Worried About the Market? Hide Out in These 3 High-Yielding Dividend Stocks

Investing in the stock market today can be a bit unnerving, with so many stocks trading at elevated valuations and growing concerns about a potential tech bubble. The market may very well be overdue for a significant pullback, potentially even a crash.

For investors concerned about that possibility, there are options to consider, including investing in top dividend stocks with strong, stable businesses that can perform well across a wide range of market conditions. Procter & Gamble (NYSE: PG), Southern Company (NYSE: SO), and Chevron (NYSE: CVX) are all high-yielding stocks that can be valuable for income investors seeking safe places to invest in right now.

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Procter & Gamble

Consumer goods giant Procter & Gamble is a solid low-volatility investment that can be an ideal option for risk-averse investors. There's always a strong, continuous demand for its varied consumer products, enabling the business to generate fairly consistent results from one year to the next.

At slightly above 3% in dividends, investors are getting a far higher yield with the stock than what the S&P 500 averages (1.1%). Plus, Procter & Gamble is a Dividend King, having increased its dividend for an incredible 70 consecutive years, making it a rarity, even among dividend growth stocks. Its excellent track record for dividend growth makes it a near certainty that investors who buy the stock will see their dividend income rise over the years.

The biggest downside of the stock is that it won't generate much growth, so returns may be minimal. In five years, the stock is up less than 1%. For growth investors, that would be a huge disappointment, but for income investors, that's the kind of stability that can make it a highly valuable investment to hang on to for the long haul.

Southern Company

Investors can secure a slightly higher-yielding payout from Southern Company, which pays a 3.2% dividend. The utility company has more than 9 million customers, primarily in the Southeast, making it one of the larger players in the space. Utility stocks such as Southern can be highly valuable, as they generate substantial recurring income and have plenty of earnings predictability.

The company has also been raising its dividend with a high degree of consistency. While its streak of increases is nowhere near that of Procter & Gamble's, it did hit a milestone this year with its 25th annual dividend increase, boosting its payout by eight cents.

Southern's stock has performed reasonably well over the past five years, rising by 45%. However, this is also a low-volatility holding, as it has averaged a beta of just 0.33, indicating that it doesn't move closely with the overall market.

Chevron

The highest-yielding stock on this list is Chevron, which pays a dividend of 3.6%. What's impressive is how high the yield remains despite the stock's terrific gains this year -- it's up around 27% thanks in large part to rising oil prices. Chevron, a major oil producer, stands to benefit significantly when oil prices are high, resulting in strong profits.

For investors worried about rising commodity prices, geopolitical uncertainty, or inflation, Chevron can be a safe-haven stock to hide in, given its ability to perform well across a myriad of economic cycles. In the trailing 12 months, Chevron has amassed a whopping $27 billion in free cash flow, nearly twice the amount it pays in dividends (just under $14 billion).

The stock's payout looks to be rock-solid, and Chevron has also been a top dividend growth stock, raising its payout for 39 consecutive years. While there may be some volatility with the stock depending on oil prices, it can make for an excellent long-term holding given its strong position in the oil and gas sector.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.