We have pointed out for months here at 24/7 Wall St. that the market was very overbought. We also have advised readers that we have only had just one 5% market correction since the fall of 2020. Toss in the fact that inflation is rearing its ugly head, and we could be in for the kind of serious sell-off that last hit the equity markets as recently as 2020.

Since the lows in March of 2020, the stock market has more than doubled. Think about that for a moment. The S&P 500 closed at 2,237 on March 23 of that year and closed on January 3, 2022, at 4,793, an incredible 115%+ gain in 22 months. Numerous reasons for the massive gains have been cited, including the incredibly loose monetary policy that has been in place for years but went nuclear when COVID-19 showed up in the winter of 2020. Toss in the Reddit/WallStreetBets retail army crowd, which had government hand-outs initially to trade with while locked at home, and you had all the ingredients for the proverbial melt-up.

The bottom line is that the Federal Reserve liquidity punchbowl is going away soon. After years of avoiding raising interest rates, the Fed has painted itself into a deep corner, and the spiraling inflation needs to be dealt with now. Most on Wall Street now expect to see four interest rate hikes this year, beginning in March.

We screened the BofA Securities research universe looking for companies that paid solid and dependable dividends, were Buy rated and also 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 2.78% dividend. The BofA Securities price target for Coca-Cola stock is $64, while the consensus target is $63.72. The shares closed on Friday trading at $60.45.

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.

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.

Shareholders receive a 3.18% dividend. BofA Securities has an $88 target price. The consensus target for Dominion Energy stock is lower at $85.84, and Friday’s last trade was at $79.31 a share.

Mondelez

This consumer staples giant 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.

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.

Mondelez stock investors receive a 2.05% dividend. The $75 BofA Securities price target compares with the $72.48 consensus target and the most recent close at $68.36 per share.

The company offers a very solid dividend, which should be raised again soon. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn. Some of these are among the most valuable brands in the world.

The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.

Shareholders receive a 2.14% dividend. BofA Securities has set a $180 price objective, well above the consensus target of $166.07. Procter & Gamble stock closed at $162.62 a share on Friday.

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.

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

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 4.82% dividend. The BofA Securities price objective is $64 for Verizon stock. The analysts’ consensus figure is $60, and shares closed Friday’s trading session at $53.16.

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Three consumer staples leaders, an outstanding utility and a telecommunications giant that 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 coming weeks.

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