Dow Jones Companies to Buy Profit-Taking Kicks
On June 11, markets, including the Dow Jones Industrial Average, had a big day of decline. Market volatility is now putting pressure on broader indices. And many retail investors are understandably getting nervous about which stocks to invest in. Therefore, today, I would like to discuss three Dow Jones companies to buy in long-term portfolios. I believe that all three populations would provide diversification and provide some stability as market participants navigate the choppy waters.
Over the past two months, moreover, markets have been capitalizing on optimism regarding the less-feared economic and health effects of the coronavirus pandemic. A good number of investors had become quite complacent. Yet at the same time, many economists have been debating how Wall Street might be emerging while so many people on Main Street are suffering economically.
For example, according to the NBER Business Cycle Dating Committee (BCDC), the US economy was in a recession as early as February. 2020.
There are things that can be done to alleviate the problems, but many may need to be done at the federal level.
When asked about the impact on the economy, clinical professor of Finance David Kass in the School of Business Robert H. Smith of the University of Maryland, said in an email to InvestorPlace: “To prevent the recession from becoming a depression, the Federal Government will have to plug the hole in the economy of the united States, created on … The Federal Reserve can provide trillions of dollars in loans to support the economy. This funding would help households and employers of all sizes and strengthen the capacity of state and local governments to provide critical services until a vaccine is widely available.”
At this point, it is still early to say how long the economic contraction will last and how severe it will be. And we still don’t know if there will be another wave of increased Covid-19 cases along with hospitalizations. Therefore, top-tier stocks with proven business models, earnings and cash flows can recession-proof in many portfolios right now. For such companies, the possibility of economic recovery in a short time would also mean even brighter days ahead.
With this in mind, here are three Dow Jones companies to buy now:
Home Depot (NYSE:HD)
McDonald’s (NYSE: MCD)
LOUIS NAVELLIER: MY STOCK #1 FOR 2020
Dow Jones companies to buy: Home Depot (HD)
In early May, the world’s largest home improvement retailer announced first-quarter results. It reported revenue of $ 28.3 billion for the first quarter of fiscal 2020, an increase of 7.1% from the first quarter of fiscal 2019.
The group operates nearly 2,300 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Unlike many other retailers, Home Depot is an essential retailer. Therefore, in the midst of the blockade, its stores have remained open, albeit with a decrease in business hours. So sales have benefited from the lockdown during the novel coronavirus.
However, net income fell 10.7% to.2.25 billion, or. 2.08 per share, compared with. 2.51 billion, or. 2.27 per share, a year earlier. The administration attributed the decrease in net income to additional costs incurred due to additional measures, especially with regard to store security and increased wages. Home Depot said these measures cost the group después 640 million after tax, or about 60 cents per share.
Management also suspended the fiscal 2020 guidance previously communicated. But the board declared a first-quarter cash dividend of.1.50 per share. The current price of $247.50 means a dividend yield of 2.4%. The shares are expected to go ex-dividend next early September.
In recent years, the group has been spending a lot to integrate its online stores and businesses. I hope the business will benefit more and more from the “order online, pick up at a local Home Depot store”trend.
Year to Date (YTD), HD stock has risen more than 15%. Stocks may be under increased pressure in the short term. However, such a decline would give long-term investors a better entry point. You can consider HD shares as one of the Dow Jones companies to buy, especially if the price is approaching $ 240.