We have talked about it for months, and it has finally arrived, the kind of bear market that was inevitable after years of easy money and Federal Reserve supported liquidity. Last week, interest rates were increased by 50 basis points to make the new range for federal funds 0.75% to 1.00%. Fed Chair Powell already has telegraphed increases for June and July of additional 50 basis points, with the stated goal of getting the funds rate to 3.25% by the end of 2023.

The stock market was hammered last week, with the Nasdaq down 5% on Thursday and an additional 1.4% on Friday, as the tech-heavy index responds to the increases in rates. Down a stunning 22.37%, that is its worst start to a year on record. The Dow Jones industrials are only down 9.46%, but that is only 30 stocks, while the S&P 500 has logged a 13.49% loss this year.

Worried investors are dreading the second-quarter statements, and with good reason, as the path of least resistance is probably lower. As the adage goes, “Don’t fight the Fed.” That works both ways. We screened our 24/7 Wall St. research database looking for solid, defensive blue-chip companies that pay dependable dividends and have stocks that should be able to withstand further selling.

Seven top companies hit our screens. All make sense for investors looking to shift portfolios or others with cash at the ready. While these stocks are rated Buy, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

AT&T

The legacy telecommunications company has been going through a long restructuring, has lowered its dividend and has sold off or merged underperforming assets. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.

Its Communications segment offers wireless voice and data communications services and sells handsets, wireless data cards, wireless computing devices with carrying cases and hands-free devices through its own company-owned stores, agents and third-party retail stores.

AT&T also provides data, voice, security, cloud solutions, outsourcing and managed and professional services, as well as customer premises equipment for multinational corporations, small and midsized businesses, and governmental and wholesale customers. In addition, it offers broadband fiber and legacy telephony voice communication services to residential customers.

The company markets its communications services and products under the AT&T, Cricket, AT&T Prepaid and AT&T Fiber brand names. The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names.

AT&T stock investors receive a 5.54% dividend. Raymond James has a $26 price objective, and the consensus target is $24.64. The stock traded at $19.80 early Monday.

This is a top Warren Buffet holding, and he owns a massive 400 million shares. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. It has an incredibly strong worldwide brand, with 40% overseas sales.

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 2.72% dividend. The Truist Financial target price on Coca-Cola stock is $75 target price. The consensus target is $69.81, and shares traded at $64.60 Monday morning.

Duke Energy

This large-cap utility leader is always a solid idea when the going gets tough. Duke Energy Corp. (NYSE: DUK) is an energy company in the United States that operates through the following segments.

The Electric Utilities and Infrastructure segment generates, transmits, distributes and sells electricity generated from coal, hydroelectric, natural gas, oil, renewable generation and nuclear fuel. It also engages in the wholesale of electricity to municipalities, electric cooperative utilities and load-serving entities. This segment serves approximately 8.2 million customers in six states in the Southeast and Midwest regions of the United States, covering a service territory of approximately 91,000 square miles, and it owns approximately 50,259 megawatts (MW) of generation capacity.

The Gas Utilities and Infrastructure segment distributes natural gas to residential, commercial, industrial and power generation natural gas customers, and it owns, operates and invests in pipeline transmission and natural gas storage facilities. It has approximately 1.6 million customers, including 1.1 million customers in North Carolina, South Carolina and Tennessee, as well as 550,000 customers in southwestern Ohio and northern Kentucky.

The Commercial Renewables segment acquires, owns, develops, builds and operates wind and solar renewable generation projects, including non-regulated renewable energy and energy storage services to utilities, electric cooperatives, municipalities and corporate customers. It has 23 wind, 178 solar and two battery storage facilities, as well as 71 fuel cell locations, with a capacity of 3,554 MW across 22 states.

Investors receive a 3.54% dividend. Credit Suisse recently started coverage and has a $125 price target. The $115.27 consensus target on Duke Energy stock is closer to the recent share price of $110.10.

Despite the huge rally in oil, this mega-cap energy leader trades below levels posted in 2018 and still offers investors an excellent entry point. Exxon Mobil Corp. (NYSE: XOM) is the world’s largest international integrated oil and gas company. It explores for and produces crude oil and natural gas in the United States, Canada, South America, Europe, Africa and elsewhere.

Exxon also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products, and it transports and sells crude oil, natural gas and petroleum products.

The company announced incredible first-quarter results, posting a massive $5.5 billion profit that was more than double the results in the same quarter last year. In addition, the energy heavyweight plans to triple is share repurchases, a huge boon for shareholders.

Shareholders receive a 3.90% dividend, which will continue to be defended. The $120 BofA Securities price target is well above the $95.63 consensus target. Exxon Mobil stock was trading at $87.70.

Kimberly-Clark

This consumer staples leader is another safe bet for nervous investors. Kimberly-Clark Corp. (NYSE: KMB) manufactures and markets personal care and consumer tissue products worldwide. It operates through the following segments.

The Personal Care segment offers disposable diapers, swim pants, training and youth pants, baby wipes, feminine and incontinence care products, and other related products under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Sweety, Kotex, U by Kotex, Intimus, Depend, Plenitud, Softex, Poise and other brands.

The Consumer Tissue segment provides facial and bathroom tissues, paper towels, napkins and related products under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brands.

The K-C Professional segment offers wipers, tissues, towels, apparel, soaps and sanitizers under the Kleenex, Scott, WypAll, Kimtech and KleenGuard brands.

The company sells its household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce. It sells away-from-home use products directly to manufacturing, lodging, office building, food service and public facilities, as well as through distributors and e-commerce.

Shareholders are paid a very solid 3.37% dividend. Kimberly-Clark stock has a $146 target price at Jefferies. The consensus target is $133.40, and shares were trading at $138.25.

The legacy fast-food heavyweight is a solid pick when the economy goes south, and it is among the safest large-cap restaurant plays. McDonald’s Corp. (NYSE: MCD) operates and franchises McDonald’s restaurants in the United States and internationally.

The company’s restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and other beverages, as well as a breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes and other sandwiches. As of December 31, 2021, the company operated 40,031 restaurants.

McDonald’s earnings jumped a strong 19% a beat estimates in the most recent period. Revenue rose 10% to $5.67 billion, also topping forecasts. In addition, same-store sales, which is a huge metric for the company, jumped 11.8%. While that number represented a big drop from prior quarters, it was much better than gloomy Wall Street expectations. U.S. comparison rose 3.5%, barely eclipsing the consensus target.

Shareholders receive a 2.20% dividend. UBS has a Wall Street leading $290 target price and McDonald’s stock has a $281.78 consensus target. On Monday, shares traded at $248.65.

Merck

This remains a leading health care stock for conservative investors. Merck & Co. Inc. (NYSE: MRK) offers therapeutic and preventive agents to treat cardiovascular issues, type 2 diabetes, asthma, nasal allergy symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, intra-abdominal infections, hypertension, arthritis and pain, inflammatory, osteoporosis, male pattern hair loss and fertility diseases.

The company also provides neuromuscular blocking agents for use in surgery, anti-bacterial products for skin and skin structure infections, cholesterol modifying medicines, non-sedating antihistamine and vaginal contraceptive products.

Investors receive a 3.14% dividend. The Goldman Sachs target price of $101 compares with a consensus target of $95.73 and a recent share price of $87.60 for Merck stock.

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While the Dow Jones industrial average and the S&P 500 are not technically in a bear market like the Nasdaq and the Russell 2000, which are both down over 20% for 2022, the proverbial writing is on the wall. Nervous investors should shift capital away from momentum and high-beta stocks to these top stocks. While they too could trade down in a landslide bear market, they will hold up much better than stocks that carry higher risk metrics.

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