If Market Rallies on Nvidia Earnings, Sell Any Strength and Run to These 5 Safe-Haven Dividend Stocks Fast

Photo of Lee Jackson
By Lee Jackson Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
If Market Rallies on Nvidia Earnings, Sell Any Strength and Run to These 5 Safe-Haven Dividend Stocks Fast

© Bet_Noire / iStock via Getty Images

AI chipmaker Nvidia is set to release its latest quarterly report, and analysts expect to see earnings of $2.09 per share. That would be a stunning jump from the $0.92 per share posted last quarter. However, with the market under tremendous stress recently, just hitting the number may not be enough. The company may have to blow away the estimates and give super positive forward guidance. Just seven stocks in the S&P 500 have accounted for 75% of the move higher this year, and Nvidia is one of them. If it fails to hit the ball way out of the park, the market could be in big trouble.
[in-text-ad]
What should investors with big “magnificent 7” gains do? If the overall market and the economy were in better shape, perhaps nothing other than hedge shares with a costless collar. Yet, with mortgage rates at highs not seen in years, the potential for interest rates to continue to rise and retail running into some stiff headwinds for some companies, it may make sense either to sell positions in full and take big profits to or sell half and hedge the other half.
[nativounit]
We screened our 24/7 Wall St. large-cap value and dividend research database for stocks with big dividends and also some big safety for worried investors. While all are rated Buy across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Dow

This stock certainly offers investors growth and income potential. Dow Inc. (NYSE: DOW | DOW Price Prediction) is a leading materials science company and was formed from the merger of Dow and DuPont in 2017 and the subsequent spin-off 2019. The company is organized into three principal divisions: Performance Materials & Coatings (23% of EBITDA), Industrial Intermediates & Infrastructure (27%) and Packaging & Specialty Plastics (51%).

The company’s segments include Agricultural Sciences, which is engaged in providing crop protection and seed/plant biotechnology products and technologies, urban pest management solutions and healthy oils. The Consumer Solutions segment consists of Consumer Care, Dow Automotive Systems, Dow Electronic Materials and Consumer Solutions-Silicones businesses.
[recirclink id=1305899]
The Infrastructure Solutions segment consists of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions, Performance Monomers and Infrastructure Solutions-Silicones businesses. Performance Materials & Chemicals consists of Chlor-Alkali and Vinyl, Industrial Solutions and Polyurethanes businesses. The Performance Plastics unit consists of Dow Elastomers, Dow Electrical and Telecommunications, Dow Packaging and Specialty Plastics, Energy and Hydrocarbons businesses.

Shareholders receive a 5.18% dividend. Piper Sandler has a $68 price objective on Dow stock. The consensus target across Wall Street is just $56.21, and shares closed on Tuesday at $53.79.

Enterprise Products Partners

This is the largest publicly traded energy partnership and a leading North American provider of midstream energy services to producers and consumers. Enterprise Products Partners L.P. (NYSE: EPD) provides a wide variety of midstream energy services, including gathering, processing, transportation and storage of natural gas, natural gas liquids fractionation, import and export terminaling, and offshore production platform services.
[in-text-ad]
One reason many analysts may have a liking for the stock might be its distribution coverage ratio. This ratio is well above 1 times, making it relatively less risky among the master limited partnerships.

Investors receive a 7.53% distribution. J.P. Morgan has set its price target at $33, and Enterprise Products Partners stock has a consensus target of $32.16. Tuesday’s close was at $26.38.

Federal Realty Investment Trust

While real estate has been hit by rising interest rates, demand is still growing and hard assets are good in inflationary times. Federal Realty Investment Trust (NYSE: FRT) is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Boston to Washington, as well as San Francisco and Los Angeles.

Federal Realty’s mission is to deliver long-term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California; Pike & Rose in North Bethesda, Maryland; and Assembly Row in Somerville, Massachusetts.

Federal Realty’s 102 properties include approximately 3,200 tenants in 26 million square feet and over 3,100 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 55 consecutive years, the longest record in the real estate investment trust industry.

The distribution yield here is 4.90%. The Barclays price target is $127, while the consensus target is $110.65. Federal Realty Investment Trust stock was last seen on Tuesday trading at $96.17.
[recirclink id=1305421]

Pfizer

This top pharmaceutical stock was one of the biggest winners in the COVID-19 vaccine sweepstakes. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes and sells biopharmaceutical products worldwide.
Pfizer offers medicines and vaccines in various therapeutic areas, including the following:

  • Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
  • Biologics, small molecules, immunotherapies and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena and Braftovi brands

[in-text-ad]

  • Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga and Paxlovid brands.
  • Pneumococcal disease, meningococcal disease, tick-borne encephalitis and COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba and the Prevnar family brands
  • Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis and Cibinqo brands
  • Amyloidosis, hemophilia and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX and Genotropin brands

Pfizer stock comes with a 4.43% dividend. Cantor Fitzgerald’s $75 price objective is well above the consensus target of $44.34 and Tuesday’s $36.84 closing share price.
[recirclink id=1304968]

Verizon Communications

This top telecommunications stock offers 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. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition.

The company 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.

Verizon has been hit hard over concerns over lead landline issues, but the company posted solid second-quarter results as it reported an unexpected increase in wireless subscriber numbers.

Shareholders receive a 7.87% dividend. Verizon Communications stock has a $49 price objective at Cowen. The consensus target is $43.67, and shares closed at $33.20 on Tuesday.
[wallst_email_signup]
The artificial intelligence tech rally has reminded many of the dot-com rally and implosion in the late 1990s and early 2000s. While the valuations may not be quite as stretched, the frothing mania certainly is similar. For young investors with a long timeline and big risk tolerance, as long as they stay off margin, they all should be fine. However, for those looking to take the money and run, now is a good time, and these picks are ideal for what could be a rough autumn.

Photo of Lee Jackson
About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618