2 High-Quality Dividend-Paying Stocks to Buy and Hold for Rest of 2023

investing.com:

As fears of a looming recession begin to mount, investors seek refuge in stable and income-generating investments. In such times, high-quality dividend-paying stocks stand out as attractive options that can offer a combination of potential capital appreciation and regular income, regardless of economic conditions.

By focusing on companies with solid fundamentals, robust cash flows, and a track record of consistent dividend payments, investors can position themselves to navigate through uncertain times while potentially benefiting from long-term growth and dividend stability.

Taking that into consideration, I used the InvestingPro stock screener to search for high-quality dividend stocks to buy amid the current market environment.

By utilizing the InvestingPro stock screener's comprehensive analysis and filtering capabilities, investors can uncover dividend-paying stocks that provide a reliable income stream and exhibit the potential for long-term growth, making them resilient options in uncertain economic climates.

I first scanned for companies with an InvestingPro Health Label of ‘Excellent,’ ‘Great,’ or‘Good.’

I then filtered for stocks with a dividend payout yield of 3% or above and a dividend growth streak of at least five years.

And those names with an InvestingPro ‘Fair Value’ upside greater than or equal to 10% made my watchlist. The Fair Value estimate is determined according to several valuation models, including price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) multiples.

Source: InvestingPro

Once the criteria were applied, I was left with a total of 33 companies that have the potential to weather economic downturns and provide investors with a reliable income stream,