#stock #dividendstocks #stockmarket #stockstrends2023
The stock market of the past year continues to resist the many headwinds. The Fed has raised federal funds rates by 425 basis points and continues to raise with the aim of returning inflation to a steady 2%.
The economy is slowing and a recession is expected in 2023, if not yet. It is therefore important for the investor to buy stocks in his portfolio with high dividend yields and which can be bought at a reduced price, as the market is now bearish.
However, it is important to remember that this information is not a guide or guarantee of success, and before you begin investing you need to carefully check each stock you are considering adding to your portfolio on your own.
So some of the best blue-chip stocks for 2023.
Johnson and Johnson (JNJ)
Source: BBC
It is a world-renowned healthcare giant that has 3 big segments of its business: healthcare, pharmaceuticals, and medical technology.
The company has a current market capitalization of $464 billion.
The company has more than 250 subsidiaries around the world, manufacturing health care products, pharmaceuticals and medical devices.
The company is part of the Dow Jones Global Titans 50 Index and is one of the largest pharmaceutical companies in the world and was founded in 1887.
The company is a dividend king as it has been increasing its dividend for more than 50 years. The company’s dividend yield is currently 2.65%.
Shell PLC (Shell)
Source: RBK Ukraine
Shell is one of the largest oil and gas companies in Europe. The company was the first to move away from fossil fuels and is actively investing in renewable energy.
The company is also working on a network of service stations, car charging stations, and shops.
Shell plans to become a carbon-neutral company by 2050. However, even at the moment, more than ⅔ of the company’s profits come from gas, oil and chemicals, and with rising prices for fossil fuels, the company will make significant profits from its core assets. The profits will accelerate the company’s investment in new charging station technology and other innovations .
The company’s dividend yield is -3.5%.
Citigroup Inc. (C)
Source: Seeking Alpha
Citigroup, one of the largest international financial conglomerates, was founded in 1998 following the merger of Citicorp and Travelers Group. It is one of the big four U.S. banks and manages more than $1.8 trillion in assets.
The bank has both extensive retail and investment banking operations and an international presence. Thanks to rising interest rates, the bank’s operational results have improved, and it’s now making its biggest profit since 2006.
Large investors are buying Citigroup shares, which attracts the attention of other investors. In particular, Warren Buffett’s Berkshire Hathaway Inc. bought a large stake this year.
Citigroup has a dividend yield of 4.5% so far.
3M Co (MMM)
Source: Stogrup
3M is a diversified industrial multinational corporation. Its consumer brands include Ace bandages, Post-It notes and duct tape. But the company’s product range is much broader: it includes everything from safety helmets to dental equipment and car parts. The company continues to be a pioneer in innovation and has accumulated more than 118,000 global patents. Despite this, 3M shares have struggled of late due to a sluggish economy and numerous product liability lawsuits. Consequently, 3M shares have fallen to their lowest level since 2014. The company’s yield has risen to 4.7%, but it is still increasing its dividend each year. 3M’s share price is supported not only by dividends but also by other factors. The share price is currently 12 times the projected earnings. Some experts predict a 44% increase in the share price in 2023, considering a fair value of $183 per share.
Bristol Myers Squibb
Source: Valor Economico
This is one of the largest pharmaceutical companies in the US, headquartered in New York.
The company has a market capitalization of $166bn. In 2019, Celgene was acquired for $74bn, the largest takeover in the pharmaceutical industry. In 2019, UPSA was sold to Japan’s Taisho Pharmaceutical.
In 2020, Bristol Myers Squibb acquired MyoKardia for $13.1bn. The aforementioned deals have started to pay dividends for the company and investors are increasingly turning their attention to the company.
The stock currently yields a dividend of 2.7%, and the company has been increasing its dividend for 14 years. It is quite obvious that the shares of the pharmaceutical giant will rise further.
Bottom Line
There are a lot of dividend companies, and despite the coming recession, which will undoubtedly affect everyone, a good decision would be to look at dividend stocks, which have not let their investors down for many years, including those companies that have already experienced recessions.
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