Stagflation Fears Are Returning: Grab These 5 Safe High-Yield Dividend Kings Now

If you were a big fan of “That ’70s Show,” get ready because we may soon get a revival, and it will likely not be as entertaining. Many across Wall Street feel that the looming specter of stagflation may be right around the corner, and with good reason. By definition, stagflation is a stagnant economy weakened by inflation. While the sticky inflation component remains in place, the stagnant economy is now being discussed on Wall Street. The recent jobs report from February was dreadful; instead of adding 60,000+ jobs, we lost 92,000, and the unemployment numbers jumped to 4.4%. While this may be a one-off event, many on Wall Street are worried that stagflation could emerge later this year.

The Federal Reserve may face a delicate balancing act: if it maintains accommodative policies to support growth, it risks fueling inflation; however, aggressive tightening to combat inflation could trigger economic stagnation. Additionally, structural changes in the global economy, including deglobalization trends, reshoring of manufacturing, and the energy transition, may create inflationary pressures while temporarily reducing productivity growth. Many of the ingredients that contributed to the 1970s stagflation persist today. High commodity prices, massive budget deficits, and profligate government spending are among the factors contributing to the turmoil. While the president is trying to curb government spending and reduce the outrageous debt levels, he is also tasked with persuading other countries to treat the United States fairly by imposing tariffs. Some fear this could also lead to stagflation-like conditions, especially if the war with Iran becomes a prolonged engagement, which, at least for now, most experts do not anticipate.

Now is the time to consider dividend stocks that perform well during periods of stagflation. We screened our 24/7 Wall St. Dividend King research database for stocks in sectors that historically outperformed during stagflation, including value stocks, commodities, aerospace and defense, real estate investment trusts, consumer staples, utilities, and more. Five companies appear to be great ideas now, and all are rated Buy at top Wall Street firms.

Companies that have raised dividends for shareholders for 50 years or more are the kinds of investments passive income investors need to own. Dependability is crucial for individuals seeking to increase their annual income through dividend stock investments. This is especially important during times of economic distress.

Altria (NYSE: MO) is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products. This stock offers value investors a solid entry point and a 6.21% dividend. Altria manufactures and sells smokable and oral tobacco products in the United States. It primarily sells cigarettes under the Marlboro brand, as well as:

• Cigars and pipe tobacco, principally under the Black & Mild and Middleton brands
• Moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands
• on! oral nicotine pouches
• E-vapor products under the NJOY ACE brand

It sells its tobacco products primarily to wholesalers, including distributors and large retail organizations, such as chain stores.

Altria used to own over 10% of Anheuser-Busch InBev (NYSE: BUD), the world’s largest brewer. Last year, the company sold 35 million of its 197 million shares through a global secondary offering. That represents 18% of its holdings but still leaves 8% of the outstanding shares in its back pocket. Altria also announced a $2.4 billion stock repurchase plan partially funded by the sale.

Altria increased its quarterly dividend in the fall of 2025 by 3.9%, from $1.02 to $1.06 per share, marking its 55th consecutive dividend increase.

Stifel has a Buy rating with a $68 target price.

Fortis (NYSE: FTS) is a leader in the regulated gas and electric utility industry in North America and is a very safe Dividend King with a 4.34% dividend. This is an off-the-radar utility stock that will benefit significantly if interest rates are lowered. Fortis operates as an electric and gas utility company in Canada, the United States, and the Caribbean.

It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona and 103,000 retail customers in Arizona’s Mohave and Santa Cruz counties. Its aggregate capacity is 3,408 megawatts (MW), including 68 MW of solar and 250 MW of wind.

The company also sells wholesale electricity to other entities in the western United States, owns gas-fired and hydroelectric generating capacity totaling 65 MW, and distributes natural gas to approximately 1,087,000 residential, commercial, and industrial customers in British Columbia, Canada.

In addition, it owns and operates the electricity distribution system serving approximately 592,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services for five hydroelectric generating facilities.

Furthermore, the company distributes electricity on the island portion of Newfoundland and Labrador, with an installed generating capacity of 145 MW, and on Prince Edward Island, with a generating capacity of 90 MW.

Additionally, it provides integrated electric utility service to approximately:

• 69,000 customers in Ontario
• 275,000 customers in Newfoundland and Labrador
• 34,000 customers on Grand Cayman, Cayman Islands
• 17,000 customers on certain islands in Turks and Caicos

Raymond James has an Outperform rating with a $57.82 USD target.

This company distributes and transports natural gas to hundreds of thousands of customers in Western New York and Northwestern Pennsylvania. National Fuel Gas (NYSE: NFG) is a diversified energy company with a reasonable dividend yield of 2.28%.

It operates through four segments:

• Exploration and Production
• Pipeline and Storage
• Gathering
• Utility

The Exploration and Production segment explores, develops, and produces natural gas and oil.

The Pipeline and Storage segment provides interstate natural gas transportation services through an integrated gas pipeline system in Pennsylvania and New York, and it owns and operates underground natural gas storage fields. This segment also transports natural gas for the National Fuel Gas Distribution Corporation and other utilities, industrial companies, and power producers in New York State.

The Gathering segment builds, owns, and operates natural gas processing and pipeline gathering facilities in the Appalachian region, providing gathering services to Seneca.

The Utility segment sells natural gas or provides natural gas utility services to various customers in:

• Buffalo
• Niagara Falls
• Jamestown
• Erie and Sharon in Pennsylvania

Bank of America has a Buy rating with a $99 target price.

This top consumer staples stock reported solid fourth-quarter earnings that exceeded analysts’ estimates, and it pays a healthy 3.53% dividend. PepsiCo (NYSE: PEP) is a worldwide food and beverage company.

Last year, Activist investor Elliott Investment Management took a $4 billion stake in PepsiCo, revealing a strategy to unlock value within the company’s iconic brand by focusing on core strengths, such as innovation and brand marketing, rather than its capital-intensive bottling operations. This move caused PepsiCo’s stock to surge, with Elliott believing the company could see over 50% upside if its proposed strategic changes were implemented. As of December 2025, PepsiCo was nearing a settlement with Elliott, agreeing to cut costs and reduce its product mix by nearly 20% to improve performance.

Its Frito-Lay North America segment offers:

• Lays and Ruffles potato chips
• Doritos, Tostitos, and Santitas tortilla chips
• Cheetos cheese-flavored snacks, branded dips
• Fritos corn chips

The company’s Quaker Foods North America segment provides:

• Quaker Oatmeal
• Grits
• Rice cakes
• Natural granola and oat squares
• Pearl Milling mixes and syrups
• Quaker Chewy granola bars
• Cap’n Crunch cereal
• Life cereal
• Rice-A-Roni side dishes

PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

• Pepsi
• Gatorade
• Mountain Dew
• Diet Pepsi
• Aquafina
• Diet Mountain Dew
• Tropicana Pure Premium
• Sierra Mist
• Mug brands

UBS has a Buy rating with a $190 price objective.

United Bankshares (NASDAQ: UBSI) is a bank holding company with dual headquarters in Charleston, West Virginia, and Fairfax, Virginia. This mid-cap financial company also offers solid total return potential now, in a sector that has performed well over the past year, and pays a 3.65% dividend.

United Bancshares primarily provides commercial and retail banking products and services in the United States through two segments:

• Community Banking
• Mortgage Banking

The company accepts:

• Checking, savings, and time and money market accounts
• Individual retirement accounts and demand deposits
• Statement and special savings
• NOW accounts

Its loan products include:

• Commercial loans and leases to small to mid-size industrial and commercial companies
• Construction and real estate loans, such as commercial and residential mortgages
• Loans secured by owner-occupied real estate
• Personal, student, and credit card receivables
• Personal, commercial, and floor plan loans
• Home equity loans

In addition, the company offers credit cards, safe deposit boxes, wire transfers, and other banking products and services, as well as investment and security services. It also provides services to correspondent banks, including buying and selling federal funds, automated teller machine services, and internet and telephone banking services.

Furthermore, it provides community banking services, including asset management, real property title insurance, financial planning, mortgage banking, brokerage services, investment management, and retirement planning.

Piper Sandler has a Buy rating with a $47 price target.