Everything is starting to look rosy again. The inflation data for November came in below the estimates, earnings have been reasonably good for the third quarter, and investors just celebrated a substantial fourth-quarter market rally.
However, the reality is that we are now involved, albeit by proxy, in two wars—the one between Ukraine and Russia, plus the fighting in the Middle East between Israel and Hamas. While the former could turn into an ugly winter stalemate, the latter could explode and advance through the region.
In addition, many on Wall Street remain very concerned that the effects of 18 months of interest rate hikes are just starting to work into the economy, and with personal and government debt exploding higher, we could be in some dangerous territory in 2024.
So, will the market crash anytime soon? No one knows, but we found six dividend leaders to buy now that can hold up and perhaps even rally during a market meltdown. All are rated ‘Strong Buy’ across Wall Street.
Bank of America
The company is the perfect money center banking player and pays a 2.85% dividend. Bank of America Corporation (NYSE: BAC | BAC Price Prediction) is a ubiquitous presence in the United States, providing various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations, and governments in the United States and internationally and operating 5,100 banking centers, 16,300 ATMs, call centers, online and mobile banking platforms.
Bank of America has expanded into several new US markets, with scale globally positioning them ideally to benefit from accelerating loan growth over the next two years. Moreover, unlike smaller peers, scale allows the bank to substantially increase investment over the next few years without notably jeopardizing returns, driving further market share gains.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector and pays a rich 4.04% dividend. Chevron Corporation (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.
The company operates in two segments:
- Upstream
- Downstream
The Upstream segment is involved in the
- Exploration development, production, and transportation of crude oil and natural gas
- Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
- Transportation of crude oil through pipelines
- Transportation, storage, and marketing of natural gas, as well as operating a gas-to-liquids plant
The Downstream segment engages in
- Refining crude oil into petroleum products
- Marketing crude oil, refined products, and lubricants
- Manufacturing and marketing renewable fuels
- Transporting crude oil and advanced products by pipeline, marine vessel, motor equipment, and rail car
- Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives.
This is one of the three energy holdings in Berkshire Hathaway, which holds 123 million shares of the integrated giant.
The Coca-Cola Company
This company also remains a top Warren Buffet holding as he owns a massive 400 million shares. Shareholders are paid a solid 3.26% dividend. The Coca-Cola Company (NYSE: KO) is the world’s largest beverage company, offering consumers more than 500 sparkling and still brands.
Led by Coca-Cola, one of the world’s most valuable and recognizable brands, the Company’s portfolio features 20 billion-dollar brands, including:
- Diet Coke
- Fanta
- Sprite
- Coca-Cola Zero
- Vitaminwater
- Powerade
- Minute Maid
- Simply
- Georgia
- Del Valle
Globally, they are the No. 1 provider of sparkling beverages, ready-to-drink coffees, and juices and juice drinks.
Through the world’s most extensive beverage distribution system, consumers in more than 200 countries enjoy the company’s beverages at a rate of more than 1.9 billion servings a day. It’s also important to remember that the company owns 16.7% of Monster Beverage (NASDAQ: MNST), which continues to deliver big numbers.
Johnson & Johnson
With a diverse product base and a familiar and solid brand, this is among the most conservative big pharmaceutical plays and pays a rich 3.04% dividend. Johnson & Johnson (NYSE: JNJ) is one of the top market cap stocks in the healthcare sector and raised the dividend for shareholders last year for the 61st consecutive year.
The company remains one of Wall Street’s most diversified healthcare names, with everything from medical devices to over-the-counter health items and prescription drugs.
The healthcare giant also has one of the most exciting pipelines of new drugs in the sector. That, combined with the solid OTC product business, makes the stock an outstanding holding for conservative accounts with a long-term investment.
The company generates a little over half of its sales in international markets, which are expected to see higher spending on healthcare over the next ten years and beyond.
McDonald’s
The legacy fast-food heavyweight is a solid pick when the economy goes south or north, is among the safest large-cap restaurant ideas, and pays a 2.31% dividend. McDonald’s Corporation (NYSE: MCD) operates and franchises McDonald’s restaurants in the United States and internationally. Ninety-five percent of McDonald’s approximately 13,500 U.S. restaurants are owned and used by independent business owners.
The company’s restaurants offer:
- Hamburgers and cheeseburgers
- chicken sandwiches and nuggets
- Fries
- Salads
- Shakes
- Frozen desserts
- Sundaes
- Soft serve cones
- Bakery items
- Soft drinks
- Coffee
- Muffins
- Sausages
- Biscuit and bagel sandwiches,
- Oatmeal
- Hash browns
- Breakfast burritos
- Hotcakes
Southern Company
This large-cap utility leader makes sense for conservative accounts and pays a stellar 3.96% dividend. Southern Company (NYSE: SO), through its subsidiaries, engages in the generation, transmission, and distribution of electricity.
It operates in four segments:
- Gas Distribution Operations
- Gas Pipeline Investments
- Wholesale Gas Services
- Gas Marketing Services
The company also
- Constructs, acquires, owns, and manages power generation assets, including renewable energy and battery energy storage projects
- Sells electricity in the wholesale market
- Distributes natural gas in Illinois, Georgia, Virginia, and Tennessee and provides gas marketing services, wholesale gas services, and gas pipeline investment operations.
Southern Company also
- Owns and operates 30 hydroelectric generating stations
- 24 fossil fuel generating stations
- three nuclear-generating stations
- 13 combined cycle/cogeneration stations
- 44 solar facilities
- 13 wind facilities
- one fuel cell facility
- one battery storage facility
- Constructs, operates and maintains 75,924 miles of natural gas pipelines and 14 storage facilities with a total capacity of 157 Bcf to provide natural gas to residential, commercial, and industrial customers.
The company serves approximately 8.6 million electric and gas utility customers. It also provides products and services in energy efficiency and utility infrastructure.
In addition, the company offers digital wireless communications and fiber optics services.
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