The coronavirus pandemic looks set to trigger the next economic recession, given the ongoing shutdowns in various industries around the world. A steep pullback in the stock market already provides clear insight that things are not well. The S&P 500 is already down by more than 20%, consequently turning bearish after one of the longest Bull Run. Amidst the ferocious sell-off in the stock market, the likes of Medtronic PLC (NYSE: MDT), Johnson & Johnson (NYSE: JNJ) and Genuine Parts Company (NYSE: GPC) continue to provide exciting investment opportunities.
The pullback in the stock market might as well have presented an opportunity to buy stocks at highly discounted rates. Some of the stocks worth paying close watch to be those that have solid fundamentals and have consistently raised interest rates for 25 years or more. Dividend Aristocrats and Dividend Kings are the stocks that any investor looking for long-term investment opportunities should play close watch to.
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Medtronic Dividend Aristocratic
Medtronic PLC (NYSE: MDT) is a dividend Aristocratic that looks like a safe bet, amidst the ongoing sell-off triggered by the COVID-19 pandemic. The fact that the company’s core business revolves around the healthcare industry means it is well-positioned to ride through the current sell-off.
The company develops and distributes device-based medical therapies, commonly used in hospitals by physicians, clinicians, and patients worldwide. With the healthcare industry a buzz of activity amidst the current pandemic, Medtronic should continue to see booming business.
Medtronic should continue to register sales growth as the healthcare industry is projected to grow by 5% to 6%. With the current stock trading at more than 40% below its 52-week high, now may be the best time to buy it at a discount. Similarly, Medtronic boasts of an attractive dividend yield that should excite income-focused investors. The medical device company boasts of a 2.7% dividend yield.
Johnson & Johnson Attractive Dividend Yield
Johnson & Johnson (NYSE:JNJ) is a must-watch for investors looking to gain exposure in the healthcare sector in addition to taking advantage of attractive dividend yield. The company’s core business revolves around the pharmaceutical and consumer staples industries that is at the center of the current standoff triggered by Covid-19.
The company’s Pharma business is at the heart of the company’s bottom line, having generated attractive growth rates in recent years. Demand for the company’s cancer drugs such as Imbruvica should continue to affirm sales growth. The fact that demand for pharmaceutical products is not cyclical affirms the fact that the company will continue to register sales amidst the COVID-19 pandemic.
In addition, Johnson & Johnson’s dividend yield has risen to five years high in recent years. With sales not expected to drop significantly amidst the current standoff in the equity market, the company should be able to safeguard its dividend yield.
Genuine Parts Company (NYSE:GPC) Recession Prospects
Genuine Parts Company (NYSE:GPC) is an ideal pick for investors looking to diversify their portfolio beyond the healthcare sector. The company distributes and sales car parts for buses, trucks, farm vehicles as well as marine equipment.
In case of a recession, demand for new automobiles normally takes a hit. In such a case, Genuine Parts Company looks set to enjoy booming business on people coming for car parts to repair their cars. During a recession, people tend to hang on to their old cars instead of spending more to buy new cars.
Genuine Parts continued to grow its dividend in recent years on customers hanging on to their older cars; therefore fueling demand for car parts. Likewise, the company looks set to navigate the imminent recession with ease as it has done in yesteryears.