Many traders are in search of safer dividend shares to purchase proper now. And that’s comprehensible as international markets are effectively and really in meltdown mode because of tariff uncertainty.

The excellent news is that on the London Inventory Alternate, there are many dividend shares on the safer aspect. Right here’s a have a look at two I believe are price contemplating right this moment.

Figuring out secure shares

There are numerous methods to determine safer shares. One is to search for firms that function in defensive industries like Shopper Staples and Utilities. One other means is to search for firms which have recurring revenues, robust money flows, and strong stability sheets.

However there’s a shortcut we will take to search out the most secure shares out there proper now. And that’s merely which shares are near their 52-week highs. This may give us a sign of the place cash is flowing on this market volatility. In different phrases, it will probably spotlight the ‘safe-haven’ shares.

Shifting upwards

Wanting on the FTSE 100 right this moment, there are presently seven shares which can be inside 1% of their 52-weeks highs. And there are 16 inside 5%. Now, I wouldn’t classify all of those shares as secure. However a variety of them do have the potential to supply safety within the present market.

One that appears attention-grabbing to me at current is electrical energy firm Nationwide Grid (LSE: NG.). It’s presently solely about 1% off its 52-week excessive.

Utilities are traditional safe-haven shares as a result of demand for electrical energy and gasoline tends to stay fairly secure all through the financial cycle. Whereas shoppers may resolve to not purchase a brand new pair of trainers in a recession, they’re not going to cancel their electrical energy or gasoline contract.

The numbers right here look fairly interesting, in my opinion. At the moment, the inventory trades on a forward-looking price-to-earnings (P/E) ratio of 14.6, which isn’t excessive. The dividend yield‘s about 4.4% and dividend coverage (the ratio of earnings to dividends) is about 1.6 times. So there’s potential for an honest stage of revenue.

I’ll level out that there’s some uncertainty in relation to tariffs. For instance, the corporate could finish up paying greater costs for renewable vitality know-how, leading to decrease earnings.

Total although, I believe this dividend inventory is on the safer aspect and is price contemplating within the present atmosphere.

Resistant to tariffs?

One other inventory that appears attention-grabbing to me proper now’s Rightmove (LSE: RMV). It’s lower than 1% off its 52-week excessive.

This isn’t your typical safe-haven inventory – it’s an web firm (these might be unstable at instances). Nonetheless, I can see why traders are gravitating in the direction of it proper now.

Rightmove is a British firm that gives property search companies within the UK. So it shouldn’t be affected by Trump’s tariffs, in concept. Furthermore, it’s comparatively resistant to the ups and downs of the property cycle. Even throughout downturns, it tends to expertise progress and excessive ranges of profitability (it’s one of the vital worthwhile firms within the FTSE 100).

In fact, it’s not excellent. At the moment, Rightmove is dealing with extra competitors than ever. Nonetheless, with the inventory buying and selling on a low-20s P/E ratio and providing a yield of 1.5%, I just like the set-up. I believe it has the potential to ship strong returns within the years forward.