AT&T
Telecommunications giant AT&T (NYSE:T) is on this list because the need for broadband and wireless data is rock-solid. The company has significant market share in America, which gives it clear economies of scale. And given its investments in 5G and fiber optics, the company stands to benefit from the Biden Administration’s new $42 billion plan to make internet access universal in every U.S. state and territory by 2030 under the Broadband Equity Access and Deployment Program.
AT&T expects to generate over $16 billion in free cash flow this year, which would help underwrite the firm’s hefty 7.4% dividend yield, which is far higher than that of most blue chip stocks at the moment.
More: How much is needed to live off dividends?
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Learn MoreEnbridge
North America’s energy infrastructure is another timeless asset. Canadian firm Enbridge (NYSE:ENB) operates the largest network of oil and natural gas pipelines across the continent. In recent months the company has announced plans to expand its network as demand for energy rebounds and North American energy producers ramp up exports to Europe.
The fact that Enrbidge derives its value from hard assets and infrastructure makes it a more reliable stock than energy producers and refiners. Enbridge has ramped up its dividend every year for 28 consecutive years.
The stock currently trades at a price-to-earnings ratio of 42 with a 7.2% dividend yield.
Pfizer
Pharmaceutical giant Pfizer (NYSE:PFE) saw sales jump as the world tackled the COVID-19 pandemic. But pandemic sales are now receding and investors have retreated from Pfizer’s stock, which is down around 30% year to date.
Meanwhile, the firm’s revenue was down 29% year over year in the first quarter of 2023.
But the underlying business is still robust. Pfizer has a vast portfolio of lucrative drugs and many more in the pipeline. The stock may be undervalued at the moment, trading at just seven times earnings and the dividend yield is 4.4%.
Investors seeking a contrarian bet should consider adding Pfizer to their watch list.
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