3 safe-haven stocks with big dividends that I’d buy for my ISA

Looking to load up on dividend shares? Royston Wild talks up three safe-haven stars that he thinks are brilliant picks for ISA investors.

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History shows that alcohol sales balloon in times of severe recession. It’s why beverages stocks are considered to be safe havens for when the rest of the world goes to hell in a handcart. It’s why I reckon Stock Spirits Group (LSE: STCK) could be a top buy for ISA investors today.

This small-cap operates in the Central and Eastern European spirits market, and in particular in Polish and Czech territories. It’s no small fish either. Through a stable of more than 40 brands it has managed to outperform the market in recent times in key segments like vodka. Both values and volumes are booming and are likely to continue doing so in the current climate.

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Right now Stock Spirits provides great value for money. As well as sporting a forward P/E ratio of just 11 times it boasts a chunky 4.7% dividend yield too. It’s a top buy in these tough times.

Dial into big dividends

Telecom Plus (LSE: TEP) is another big-yielding safe haven I’d gladly load into my Stocks and Shares ISA.

Telecoms and utilities are two of the most popular sectors when economic conditions are trying like now. The earnings visibility of companies therein tend to be stronger than those in most other market segments. And Telecom Plus, through its role as gas and electricity supplier and broadband and mobile phone services operator, straddles both sectors.

Don’t just consider the FTSE 250 firm as the perfect lifeboat in these troubled times though. Trading at the business continues to pick up pace and Telecom Plus delivered record revenues and profits in the last financial year (to March 2020). Customer numbers have continued to climb (up 2.7% in the recently-finished period, to above 650,000) while the list of services it provides also keeps ballooning (up 6.2% to 2.69m).

The telecoms titan’s shares don’t come cheap, as reflected by a slightly-toppy forward P/E multiple of 24 times. I’d be happy to accept paying a premium price for it though, given the peace of mind (and the robust profits picture) that its range of essential services provide. Besides, a chunky 4.2% dividend yield for fiscal 2021 helps to take the edge off.

The letters ISA (Individual Savings Account) on dice on stacks of gold coins on a white background.

Another top ISA buy

Defence is one more popular rush-to-safety stock sector during troubled periods. Recent news flow shows that the appetites of some of the world’s major military powers to boost weapons spend remains healthy, despite the coronavirus outbreak and its far-reaching economic implications.

It’s one of the reasons I reckon BAE Systems (LSE: BA) is a great pick for ISA investors today. This particular FTSE 100 stock is, of course, a major supplier to the world’s largest defence spender, the US, where its hardware is used in planes, ships and for a wide variety of other applications. It can expect to do more business with Washington (and its allies) after it sealed a $275m deal to acquire Raytheon Technologies’s Airborne Tactical Radios division last week.

Despite these qualities, BAE Systems is pretty cheap. It carries a forward earnings multiple of around 11 times. The defence giant boasts a 4.7% dividend yield for 2020 too. I reckon it would look good in any ISA, irrespective of its obvious safe-haven appeal right now.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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