These income stocks have a rich history of delivering for their shareholders.

For the first five months of 2022, investors have been given a not-so-subtle reminder that stocks can go down just as easily as they can rise in value.

Since the year began, the iconic Dow Jones Industrial Average entered correction territory with a decline of greater than 10%, while the S&P 500 (very briefly, on an intra-day basis) and Nasdaq Composite both pushed into a bear market. The latter has endured a peak-to-trough drop of as much as 31% in six months.

Although bear market declines can be scary, and the velocity of downside moves can test the resolve of investors, history has conclusively shown that putting your money to work during these downturns is a smart move . After all, every major crash, correction, and bear market throughout history has eventually been cleared away by a bull market.

In other words, it’s not a matter of if you should buy; it’s a matter of what to buy. Image source: Getty Images. Perhaps the best answer to what to buy is dividend stocks . Because income stocks are often profitable, time-tested, and can usually provide transparent growth outlooks, they’re just the type of companies we’d count on to increase in value over time — even with corrections and bear markets mixed in.

Dividend stocks also have a knack for running circles around their non-dividend-paying peers . A 2013 report from J.P. Morgan Asset Management, a division of the nation’s largest bank by assets, JPMorgan Chase , found that dividend stocks averaged an annual return of 9.5% over a four-decade stretch (1972-2012). Comparatively, publicly traded companies that didn’t pay a dividend scraped and clawed their way to a meager 1.6% average annual return over the same time frame.

Right now, dividend stocks can somewhat or fully offset the effects of inflation and help long-term investors sleep better at night. What follows are three of the safest dividend stocks that have the tools needed to turn a $300,000 initial investment into $1 million by 2030. Image source: Getty Images. Broadcom: 3% yield

The first extremely safe income stock with the potential to generate a 233% return on a $300,000 investment by the end of the decade is semiconductor solutions specialist Broadcom ( AVGO 5.92%). Broadcom currently sports a 3% yield but has grown its quarterly payout by more than 5,700% (not a typo!) since 2010.

Like most tech stocks, Broadcom is facing a wall of worry caused by domestic recession fears and global supply chain snafus tied to COVID-19 and the war in Ukraine. But unlike most tech stocks, the company has a slew of catalysts that act as a downside buffer during the Nasdaq bear market.

For example, Broadcom generates the bulk of its revenue from selling wireless chips and accessories used in next-generation smartphones. Having a smartphone and wireless access has effectively evolved from being optional to necessary since the Great Recession. With the exception of a small dip in global smartphone sales tied to the pandemic, worldwide unit sales have continued to grow since 2007. With telecom companies steadily upgrading their infrastructure to handle 5G speeds, the expectation is that Broadcom will benefit from a multidecade device replacement cycle .

To build on this point, the company is typically locking in production orders well in advance. Broadcom ended 2021 with a record backlog of $14.9 billion and was booking orders well into 2023, per CEO Hock Tan. The key point being that demand isn’t an issue, and the company offers highly predictable cash flow.

Broadcom’s infrastructure solutions are another long-term bright spot . It provides connectivity and access chips used in data centers, which should come in handy with businesses shifting their data into the cloud at an accelerated pace in the wake of the pandemic. It also provides solutions for next-gen automobiles.

The cherry on the sundae is Broadcom’s just-announced offer to acquire VMware ( VMW 3.94%) for $61 billion in cash and stock. This deal should further diversify Broadcom’s business by bringing VMware’s slow but steadily growing cloud management and infrastructure solutions into the fold. Image source: Getty Images. AGNC Investment Corp.: 11.9% yield

The second extremely safe dividend stock that has all the potential to turn a $300,000 investment into a cool million dollars is mortgage real estate investment trust (REIT) AGNC Investment Corp. ( AGNC 1.83%). The company’s 11.9% yield is, by far, the highest on this list.

Even though the products AGNC Investment purchases can be somewhat complex, the company’s business model […]

source 3 Extremely Safe Dividend Stocks That Can Turn $300,000 Into $1 Million by 2030

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