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The Bank of America (NYSE:BAC) Global Fund Managers Survey showed fairly bearish sentiment, with a consensus pointing to a mild US recession in the last quarter of 2023. At the moment, fears are caused by collateral risks associated with inflation, political mistakes and a credit crunch, writes Business Insider.
Fighting this kind of bearish sentiment can be done with dividend-paying stocks, especially in the long run—these cash-flow securities tend to outperform their counterparts during economic downturns, according to Morningstar analysts. Stocks that pay dividends experience less volatility due to their performance boosting investor confidence. They also tend to have stronger balance sheets and better cash flow.
Consider 10 stocks that Morningstar analysts prefer:
1. Verizon (NYSE:VZ) Communications (Ticker: VZ) forward dividend yield: 7.09%. The company provides telecommunications services.
2. Pfizer (Ticker: NYSE:PFE) forward dividend yield: 4.52%. The company is a drug manufacturer.
3. Comcast (Ticker: CMCSA) forward dividend yield: 2.78%. The company provides telecommunications services.
4. Wells Fargo (Ticker: NYSE:WFC), investment bank forward dividend yield: 2.95%.
5. Medtronic (Ticker: MDT) forward dividend yield: 20%. The company manufactures medical devices.
6. Gilead Sciences (Ticker: GILD), forward dividend yield: 3.94%. The company is a drug manufacturer.
7. Dow (Ticker: DOW), forward dividend yield: 5.29%. The company operates in the chemical industry.
8. WEC Energy (Ticker: WEC) forward dividend yield: 3.57%. The company provides services in the field of electric power industry.
9. PPL Corp (Ticker: NYSE:PPL), forward dividend yield: 3.66%. The company provides services in the field of electric power industry.
10. Kellogg (Ticker: K), forward dividend yield: 3.60%. The company manufactures packaged products.
