Wall Street Says 1970s Stagflation Possible: 4 Safe High-Yield Dividend Kings to Grab 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. A recent CNBC survey found that top economists anticipate first-quarter gross domestic product growth could be as low as 0.3% and that core inflation will remain near the 3% level for the remainder of 2025.

Many of the ingredients that contributed to the 1970s stagflation are still present today. High commodity prices, massive budget deficits, and profligate government spending are just a few of the factors stirring the pot. While the U.S. 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 feel that could lead to stagflation-like conditions.

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. Four companies appear to be great ideas now, and all are rated Buy at top Wall Street firms.

Why do we cover stagflation-resistant Dividend King stocks?

Companies that have raised their dividends for shareholders for 50 years or longer are the kind of investments that 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

This is one of the world’s largest producers and marketers of cigarettes and other tobacco-related products, and its stock offers value investors a great entry point. Altria Group Inc. (NYSE: MO) manufactures and sells smokable and oral tobacco products in the United States.

The company provides cigarettes primarily 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, 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 recently increased its quarterly dividend by 4.1%, from $0.98 to $1.02 per share, marking its 59th dividend increase in the past 55 years.

Fortis

This leader in the regulated gas and electric utility industry in North America is also a Dividend King. This off-the-radar utility stock will benefit significantly if interest rates remain unchanged. Fortis Inc. (NYSE: FTS) 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 capacity and 250 MV of wind capacity.

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 that serves 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 to 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

Kenvue

Kenvue Inc. (NYSE: KVUE) is the world’s largest pure-play consumer health company by revenue. Spun off from Johnson & Johnson in 2023, this global consumer health company is a potential total return home run.

The company operates through three segments:

• Self Care
• Skin Health and Beauty
• Essential Health

The self-care segment offers cough, cold, and allergy pain care, digestive health, smoking cessation, and other products under these brands:

• Tylenol
• Nicorette
• Zyrtec

The Skin Health and Beauty segment provides face and body care, hair care, sun care, and other products under these brand names:

• Neutrogena
• Aveeno
• OGX

The Essential Health segment offers oral and baby, women’s health, and wound care products under these brands:

• Listerine
• Johnson’s
• Band-Aid
• Stayfree

PepsiCo

This is a top consumer staples stock and a Dividend King. Worldwide food and beverage company PepsiCo Inc. (NYSE: PEP) reported solid fourth-quarter earnings and will continue to supply all the goods for summer tailgates and parties.

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

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