7 defensive “strong buy” dividend stocks to grab now as markets may return to June lows – 24/7 Wall St.



Some on Wall Street believe that technical analysis of stocks is the key to finding market directions and trends. Others think it’s pretty much useless because it doesn’t take black swan-like one-time events into account. The black swan theory is a metaphor that describes an event that surprises, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight. One of the best examples is the horrific events of 9/11.

Those who follow technical analysis see the S&P 500 breaching the 3,900 level as a big deal, and what was officially support for the venerable index has likely become a point of resistance for the markets. With a 75 basis point increase in the federal funds rate on Wednesday, it makes sense that investors aren’t “fighting the Fed” and turning to defensive dividend-paying stocks.

Defensive stocks are usually those of companies that provide needed items or services, regardless of the state of the economy. Add the kicker of a reliable dividend, and you have the type of companies worried investors should now prefer.

We scoured our 24/7 research database on Wall St. for defensive dividend leaders. We found seven that are listed for buy at major Wall Street companies and now look like outstanding ideas. It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.

Coca Cola

It remains one of Warren Buffet’s top holdings, as he owns 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 fizzy and still brands. It has an incredibly strong global brand, with 40% overseas sales.

The company’s portfolio includes 20 billion-dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid, Simply, Georgia and Del Valle. Globally, it is the leading supplier of sparkling beverages, ready-to-drink coffees, juices and juice drinks.

Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola beverages with more than 1.9 billion servings a day. Also remember that the company also owns 16.7% of Monster Beverage, which continues to deliver big numbers.

Investors receive a dividend of 2.96%. HSBC has a target price of $75 and the consensus target is $69.80. Coca-Cola stock closed Monday at $59.99.

ALSO READ: 7 Dividend Stocks In A Sector That Can Survive And Thrive During Market Crashes

General Mills

General Mills Inc. (NYSE: GIS) manufactures and markets branded consumer foods worldwide. The company offers ready-to-eat cereals, chilled yogurts, soups, meal kits, chilled and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and snacks, snack bars, fruit and savory snacks, ice cream, bar nutrition, wellness drinks and savory and cereal snacks, as well as various organic products, including frozen and shelf-stable vegetables.

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