24/7 Insights

• The stock market entered the third quarter overbought and may be ready for a big correction
• Stifel’s Barry Bannister has called huge market moves in the past
• Grab this incredible free report now Access 2 legendary, high-yield dividend stocks Wall Street loves

If there is one voice on Wall Street that we always listen to at 24/7 Wall St, it’s Stifel’s Barry Bannister, and with good reason. We have watched and documented his market calls for years, some of which are among the most incredible and courageous ever made by a sell-side research chief institutional equity strategist and his staff.

The stock market was crushed in the first quarter of 2020 as the COVID-19 pandemic unfolded. We saw a stunning 34% decline from the high on February 19, 2020, to the low on March 23rd. At the absolute bottom of the selling, Mr. Bannister suggested that clients buy stocks aggressively.

That high-velocity sell-off included a startling day on March 16, when the Dow Jones Industrials dropped 12.9%, the second biggest one-day drop after the disaster in 1987. The S&P 500 fell 12%, its third most significant percentage drop, and the Nasdaq declined a staggering 12.3%, the most significant loss ever for the tech-heavy index.

By no means a perma-bear, in May, Mr. Bannister opined that he thought the next 500-point move for the S&P 500 was to the downside, taking the venerable index back to long-term support in the 4750 area in the second or third quarter. While the market continued to rally in the second quarter, Mr. Bannister may be proven correct, as we have seen some brutal selling at the start of the third quarter, with the S&P 500 down 2.75%, despite some positive earnings reports and hopes for interest rate cuts as early as September

Given the massive increase since last fall, moving to safe, passive-income, income-yielding large-cap stocks makes sense, especially with those potential interest rate cuts on the horizon. We screened our 24/7 Wall St. passive income research database for solid ideas and found four stellar ideas to buy now. Investors should also check out these dividend legends as well. https://a673b.bigscoots-temp.com/dividend-legends/?tpid=1407652&tv=link&tc=in_content

Bristol-Myers Squibb

The company offers products in:

• Hematology
• Oncology,
• Cardiovascular
• Immunology therapeutic

The company’s products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
• Yervoy for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalassemia

Dominion Energy

Many of the Wall Street firms we cover are still very positive on utilities despite the sharp move higher this year, and this company pays a strong 5.18% dividend.

Dominion Energy, Inc. (NYSE: D) operates through four segments:

• Dominion Energy Virginia
• Gas Distribution
• Dominion Energy South Carolina
• Contracted Asset

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:

• Regulated natural gas gathering
• Transportation
• Distribution and sales activities
• Distributes nonregulated renewable natural gas

This segment serves residential, commercial, and industrial customers.

The Dominion Energy South Carolina segment:

• Generates
• Transmits
• Distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina

The company’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
• 94,200 miles of gas distribution lines

Dominion serves approximately 7 million customers.

ONEOK

Solid natural gas pricing over the next year could help lift this top energy company, which pays a 4.80% dividend. ONEOK, Inc. (NYSE: OKE) gathers, processes, fractionates, stores, transports, and markets natural gas and natural gas liquids (NGL) in the United States.

It operates through four segments:

• Natural Gas Gathering and Processing
• Natural Gas Liquids (NGL)
• Natural Gas Pipelines
• Refined Products and Crude

The company owns natural gas gathering pipelines and processing plants in the Mid-Continent and Rocky Mountain regions; it also provides midstream services to producers of NGLs.

It also owns NGL gathering and distribution pipelines in:

• Oklahoma
• Kansas
• Texas
• New Mexico
• Montana
• North Dakota
• Wyoming
• Colorado

ONEOK also owns terminal and storage facilities in Kansas, Nebraska, Iowa, and Illinois; NGL distribution pipelines in Kansas, Nebraska, Iowa, Illinois, and Indiana; transports refined petroleum products, including unleaded gasoline and diesel; and owns and operates truck- and rail-loading, and -unloading facilities connected to NGL fractionation, storage, and pipeline assets.

In addition, the company transports and stores natural gas through regulated interstate and intrastate transmission pipelines and storage facilities.

Further, it owns and operates a parking garage in downtown Tulsa, Oklahoma, and leases excess office space and rail cars. The company also transports, stores, and distributes refined products, NGLs, and crude oil and conducts commodity-related activities, including liquids blending and marketing.

It serves integrated and independent:

• Exploration and production companies
• NGL and natural gas gathering and processing companies
• Crude oil and natural gas production companies
• Utilities
• Industrial companies
• Natural gasoline distributors
• Propane distributors
• Municipalities
• Ethanol producers
• Petrochemical, refining, and marketing companies
• Heating fuel users, refineries, and exporters

Rio Tinto

This mining giant could be a massive winner as demand for all commodities continues to storm higher and pays a large 6.76% dividend. Rio Tinto Group (NYSE: RIO) explores, mining, and processing mineral resources worldwide.

The company offers:

• Aluminum
• Copper
• Diamonds
• Gold
• Borates
• Titanium dioxide
• Salt
• Iron ore
• Lithium.

It also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities.

In 2022 the company completed the sale of a royalty it holds on an area, including the Cortez mine operational area and the Fourmile development project in Nevada, to RG Royalties LLC, a direct wholly-owned subsidiary of Royal Gold Inc., for $525 million in cash. Rio Tinto obtained the royalty as partial consideration for selling its 40% interest in the Cortez Complex to Barrick in 2008.

 

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