5 Necessity Stocks That Could Protect Your Portfolio From Disaster
0.46%April 26 | MyPlanIQ portfolio symbol P_36262
The new normal of low interest rates and likely turbulence has me
looking for ideas in the area of solid companies with dividends.
Sean Williams of the Motley Fool picks five stocks in markets that
are likely to be least impacted by the ups and downs of the market
and that has me interested.
He sought to uncover five stocks that would stand the test of time
whether the global economy was booming or in a deep recession -- and
today I'll share them with you.
These five stocks all provide necessity goods to consumers. Arguably
a few of you will find his definition of "necessity" a stretch, but
given the impeccable track records of these five companies, he
believes they make good investments.
In no particular order:
|
Company |
Necessity |
Dividend Yield |
|---|---|---|
| Duke
Energy
(DUK) |
Electricity | 4.70% |
| American
Water Works
(AWK) |
Water | 2.90% |
| Chevron (CVX) |
Oil | 3.10% |
| Coca-Cola (KO) |
Food | 2.80% |
| Wal-Mart
Stores (WMT) |
Clothing | 2.50 |
Source: Yahoo! Finance
This ticks a number of boxes for me:
- Large companies
- Good dividend performance
- In stable markets that have continuing demand in any market
- Diversified choice
In his article, Sean goes into more detail of why he chooses the particular companies but, for this exercise, I am going to take them and measure then against our benchmark ETF portfolio.