If tomorrow is another Black Monday, it could mean an 8,000 point wipe out for the Dow. Many of the biggest growth stocks are showing further weakness, and are already down pre-market.
Google (Nasdaq: GOOG) – Down .7%
Tesla (Nasdaq: TSLA) – down 1.75%
NVIDIA (Nasdaq: NVDA) – down 1.8%
Palantir Technologies (Nasdaq: PLTR) – down 1.8%
It’s only natural to look around for a safe haven at a time like this. Here are three stocks bucking the trend and showing strength while others shed more value.
While modest, Altria is showing a .1% gain pre market as of right now. We’ve called it the best dividend stock to own today, and that’s still true. The company pays an incredible 7.3% dividend yield and trades for a ridiculous 8.6 times earnings. Normally when you see that sort of performance its because shares have crashed. Altria is the opposite. Shares are up over 50% in the last five years, and looks very strong today.
In a recession people will give up many luxuries. Starbucks, a new car, dinners out – they’re all on the chopping block. But they’ll still make room for cigarettes.
We’ve said Ford is the ‘least bad’ automaker right now. While auto tariffs are certainly not a good thing for the business, the company’s heavy exposure to the F-150 (both by units sold and profit) is a boon. The truck still has strong domestic manufacturing and is one of the few US companies that can position itself to benefit from the trend to bring manufacturing back stateside. While the dividend is likely to be cut, that may not be all bad news. It’s cash saved for a rainy day, and in 2008 Ford famously didn’t need a bailout. Maybe lightning can strike twice.
UK based Unilever is popping almost 4% before the open tomorrow. The company pays a 3.1% dividend, and is positioned well if US tariffs hit domestic CPG companies like Procter & Gamble. The company has been trying to sell it’s ice cream unit and has a particular spat going with outspoken Ben & Jerry’s. A successful divestiture there would mean even more cash for international growth and dividends, and even less reliance on a US based brand and product. A recent Morgan Stanley forecast suggests ongoing use of GLP-1 drugs could push consumption of ice cream, cakes, cookies, and more 4-5% by 2035, so the timing is good if Unilever can find a buyer.
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