We have noted for months here at 24/7 Wall St. that the market is very overbought. We also have advised readers that we haven’t had a 5% market correction since the fall of last year. Toss in the fact that inflation is rearing its ugly head as Tuesday the labor department reported that consumer prices increased 5.4% in June from a year earlier, the biggest monthly gain since August 2008. Excluding food and energy, inflation increased by 4.5%, the largest move since September 1991. Interestingly, but not surprising if you are shopping for a vehicle, used car and truck prices comprised about one-third of the total Consumer Price Index.
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In addition, interest rates are plunging and back at the lowest levels since February, and the warning signs are pretty much everywhere. One last indicator is that the Reddit/WallStreetBets meme stocks have been blasted recently, with both GameStop and AMC having been cut in half.

We screened the BofA Securities research universe looking for companies that paid solid and dependable dividends, had stocks that were Buy rated and had the firm’s best volatility risk rating. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.

Coca-Cola

This remains a top Warren Buffet holding and offers not only safety but also an incredibly strong worldwide brand with 40% overseas sales. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands.

Led by Coca-Cola, one of the world’s most valuable brands, the company’s portfolio features 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 number one provider of sparkling beverages, ready-to-drink coffees and juices and juice drinks.

Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola beverages at a rate of 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 2.98% dividend. The BofA Securities price target for the stock is $60, while the Wall Street consensus price target is $59.80. Coca-Cola stock ended Thursday’s trading at $56.44 per share.

Many of the Wall Street firms that we cover are still very positive on utilities, and this company is highly rated. Dominion Energy Inc. (NYSE: D) is an American power and energy company that operates through the following four segments:

• The Dominion Energy Virginia segment generates, transmits and distributes regulated electricity to residential, commercial, industrial and governmental customers in Virginia and North Carolina.
• The Gas Distribution segment engages in the regulated natural gas gathering, transportation, distribution and sales activities, as well as distributes nonregulated renewable natural gas. This segment serves residential, commercial and industrial customers.
• The Dominion Energy South Carolina segment generates, transmits and distributes electricity and natural gas to residential, commercial and industrial customers in South Carolina.
• And the Contracted Assets segment is involved in the energy marketing and price risk activities.

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As of December 31, 2020, Dominion Energy’s portfolio of assets included approximately 30.2 gigawatts of electric generating capacity; 10,500 miles of electric transmission lines; 85,600 miles of electric distribution lines; and 94,200 miles of gas distribution lines. It serves approximately 7 million customers. The company sells electricity at wholesale prices to rural electric cooperatives and municipalities, as well as into wholesale electricity markets.

Dominion Energy stock investors receive a dependable 3.31% dividend. BofA Securities has a $86 target price, and the consensus target is $85.36. Thursday’s last trade came in at $76.14 a share.

Kellogg

It should come as no surprise this solid company is included as a safe bet for the rest of 2021. Kellogg Co. (NYSE: K) is the global leader in breakfast cereal, and its other principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, frozen waffles, veggie foods and noodles.

The company offers its products under the Kellogg’s, Cheez-It, Pringles, Austin, Parati, RXBAR, Kashi, Bear Naked, Eggo, Morningstar Farms, Choco Krispies, Crunchy Nut, Nutri-Grain, Special K, Squares, Zucaritas, Sucrilhos, Pop-Tarts, K-Time, Split Stix, Be Natural, LCMs, Coco Pops, Rice Krispies Squares, Kashi Go, Vector and Gardenburger brand names.

Shareholders receive a 3.63% dividend. The $76 BofA Securities price target is well above the $67.95 consensus target. Kellogg stock closed at $63.89 on Thursday.

This is another consumer sector giant that makes good sense for conservative investors. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and grocery products.
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Its primary brand portfolio includes LU, Nabisco and Oreo biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum; Jacobs Kaffee; and Tang powdered beverages.

Mondelez sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities, as well as through independent sales offices and agents.

The dividend yield here is 1.98%. BofA Securities has set its price target at $70. The posted consensus target is $69.17, and Mondelez stock closed on Thursday at $64.12.

Verizon

Shares of this top telecommunications company offer tremendous value at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.

The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition.

Verizon acquired AOL and Yahoo to create the Oath digital content platform, which the company recently sold at a sizable loss to Apollo Global Management for $5 billion. The sale allows Verizon to offload properties from the former internet empires, though it will keep a 10% stake in the company and it will be rebranded to just Yahoo.

Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Investors receive a 4.44% dividend. The BofA Securities price objective is $64. The consensus price target is $60.51, and Verizon Communications stock closed Thursday’s session at $56.55 a share.

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Three consumer staples leaders, an outstanding utility and a telecommunications giant, and are all rated Buy and have the highest and safest BofA Securities volatility rating. While definitely the farthest ideas from the go-go momentum and mega-tech giants, they all pay dependable dividends and can soften the blow if we see a big sell-off over the next six weeks to three months.

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