So far, 2023 has been a very pleasant change from last year. All the major indexes were up in the first quarter, with the tech-heavy Nasdaq leading the way with a gain of almost 17%, its best quarterly performance since the fourth quarter of 2020. The S&P 500 fought its way to a 7% gain despite some big volatility thanks to the bank crisis and cryptocurrency explosions. The Dow Jones industrials barely closed positive for the quarter, up just 0.4%. While a positive start to the year, there is trouble brewing.

The OPEC oil production cut will spike inflation, especially as we head to the busy summer driving season. Bank lending will tighten dramatically after the Silicon Valley Bank implosion, and some like Jamie Dimon think there is more financial damage to follow. Earnings will tumble as all of the Covid largesse has been spent and consumers are spiking credit cards. Lastly, commercial real estate increasingly is looking like the next big shoe to drop.

For those seeking shelter from the coming storm, short Treasury paper makes a ton of sense, and it can be bought directly from many banks and brokerage firms. Of course, a broker can assist in that buying. The six-month T-bill Tuesday was priced to yield 4.82%, while the one-year bill yields 4.46%.

For those looking for safe-haven stocks, we screened the Berkshire Hathaway portfolio looking for the quality names that pay among the largest dividends. Seven stocks hit our screens, and while Warren Buffett loves them along with top Wall Street analysts, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Chevron

This energy giant is a solid play for investors who are more conservative and looking to be positioned in the sector. Chevron Corp. (NYSE: CVX) is a U.S.-based integrated oil and gas company with worldwide operations in exploration and production, refining and marketing, transportation, and petrochemicals. The company sports a sizable dividend and has a solid place in natural gas and liquefied natural gas.

With the strongest financial base of the majors, coupled with an attractive relative asset base, many on Wall Street feel that Chevron offers the most straightforwardly positive risk/reward. Although current conditions do not warrant a large focus on production growth, Chevron possesses numerous medium-term drivers that should support production levels in the coming years.

Chevron reported full-year 2022 earnings of $35.5 billion, well above the $15.6 billion in 2021, and increased its dividend by 6%. This increase puts Chevron on track to make 2023 the 35th consecutive year with an increase in annual dividend payout per share.

Shareholders receive a 3.55% dividend when the increase is factored in. The $212 Raymond James price target is a Wall Street high. The consensus target is $191.59, and Chevron stock ended Tuesday trading at $169.04.

This top bank stock has rallied nicely off the lows, and Warren Buffett bought $2.5 billion worth of the shares last summer. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations and governments a broad range of financial products and services.

The company offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. And it operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.

Trading at a still very cheap 7.3 times estimated 2023 earnings, Citigroup stock looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged.

Investors receive a 4.37% dividend. Oppenheimer’s $75 price target is also a Wall Street high. Citigroup stock has a $57.27 consensus target, and shares closed on Tuesday at $46.09.

Coca-Cola

This top Warren Buffet holding offers safety. 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.

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.

Coca-Cola stock comes with a 2.95% dividend. The Morgan Stanley price target is $70, while the consensus target is $68.35. Shares closed at $62.21 on Tuesday.

Johnson & Johnson

With a diverse product base and a very popular and solid brand, this is among the most conservative big pharmaceutical plays and is the only big pharma stock in the Berkshire Hathaway portfolio. Johnson & Johnson (NYSE: JNJ) researches, develops, manufactures and sells various products in the health care field worldwide.
Its Consumer Health segment offers baby care products under the Johnson’s and Aveeno Baby brands; oral care products under the Listerine brand; skin health/beauty products under the Aveeno, Clean & Clear, Neutrogena and OGX brands; acetaminophen products under the Tylenol brand; cold, flu and allergy products under the Sudafed brand; allergy products under the Benadryl and Zyrtec brands; ibuprofen products under the Motrin IB brand; smoking cessation products under the Nicorette brand; and acid reflux products under the Pepcid brand.

This segment also provides women’s health products, such as sanitary pads and tampons under the Stayfree, Carefree, and o.b. brands; wound care products comprising adhesive bandages under the Band-Aid brand; and first aid products under the Neosporin brand.

The Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension and cardiovascular and metabolic diseases.

Its Medical Devices segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopedics products in support of hips, knees, trauma, spine, sports and other; advanced and general surgery solutions that focus on breast aesthetics and ear, nose and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the Acuvue brand.

The dividend yield here is 2.88%. Citigroup has a $205 price target on Johnson & Johnson stock, and the consensus target is $179.20. Tuesday’s closing share price was $158.49.

Kraft Heinz

Even in bad times, everybody has to eat, and this company always stands to benefit. Kraft Heinz Co. (NASDAQ: KHC) was formed almost six years ago in the merger of H.J. Heinz and Kraft Foods. The company is a leading global food company, with $29 billion in annual revenues generated by such well-known brands as Kraft, Heinz, Oscar Meyer and Maxwell House. Buffett holds a big position in the stock at Berkshire Hathaway.

The company is the third largest food and beverage manufacturer in North America and derives 76% of revenues from that market and 24% from overseas. The company’s other brands include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

Investors receive a 4.12% dividend. Kraft Heinz stock is on the BofA Securities US 1 list of top picks. The firm’s $48 price target compares with a $42.67 consensus target and the most recent close at $38.61.

Kroger

This grocery chain giant is always a solid idea when the going gets rough as people tend to go out less. Kroger Co. (NYSE: KR) operates as a retailer in the United States with a focus on combination food and drug stores, multi-department stores, marketplace stores and price impact warehouses.
Kroger’s food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood and organic produce. Its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products and toys.

The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys. The price impact warehouse stores provide grocery and health and beauty care items, as well as meat, dairy, baked goods and fresh produce items.

Kroger also manufactures and processes food products for sale in its supermarkets and online, and it sells fuel through 1,613 fuel centers. As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia.

Shareholders receive a 2.08% dividend. BofA Securities has set its target price at $75, well above the $52.16 consensus target. Kroger stock closed on Tuesday at $49.46.

Procter & Gamble

The company offers a very solid dividend and consumer staples that are always in demand. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products companies and one of the oldest in the Fortune 500. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.

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 with years of steady growth and dividends.

Procter & Gamble stock investors receive a 2.44% dividend. The Raymond James price objective is $170. The consensus target is $154.76, and the shares ended Tuesday trading at $150.23.

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The market is teetering, as much of the incoming data is turning negative, there have been tens of thousands of layoffs, the potential for earnings blow-ups are rattling investors, and the possibility for more downside is quite strong. While the sell-side on Wall Street is always looking for the proverbial bright side, the reality is we could be on the precipice of a big move lower, and safe stocks are the way to go now. With first-quarter earnings reports rolling in a big way next week, take profits and move to safety.

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