7 A-Rated Stocks to Buy After the Seismic Market Shift

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stocks to buy - 7 A-Rated Stocks to Buy After the Seismic Market Shift

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The market has been hit hard by the coronavirus from China and all the economic consequences of its global threats.

But that doesn’t mean it will stay on the mat. Soon, countries will be putting into place economic measures to stimulate growth and back-stop any worst-case scenario.

And while we may experience a couple of quarters of sub-par growth, if we use China as an example, things will get back to normal relatively quickly … if you take the long view.

And that’s what these seven A-rated stocks to buy after the seismic shift are all about. These stocks are great long-term growth stocks. And they’re also shareholder friendly — that’s what their dividends are all about.

The dividends for many aren’t huge, but it’s better than having money sitting in a CD or savings account. I always like to have a healthy weighting of dividend payers on my Growth Investor buy list — and, now with ultra-low bond yields and the Federal Reserve cutting rates, I’m looking for dividend stocks to lead the market out of this mess.

The stocks below are A-rated by my Portfolio Grader and are great choices for sensible investors looking to buy quality for the long haul at good prices.

Stocks to Buy: Microsoft (MSFT)

Stocks to Buy: Microsoft (MSFT)

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Dividend Yield: 1.4%

Microsoft (NASDAQ:MSFT) has a reputation as a legacy tech growth stock, but it also delivers a solid, reliable 1.4% dividend. And even after the recent carnage, MSFT stock is still up 18% for the past 12 months.

What’s more, the coronavirus has moved us ever closer to decentralized work, school and healthcare. And the winners of that shift are businesses that operate networks and cloud-based services that provide that flexibility. Microsoft is certainly one of the leaders of that pack.

MSFT has moved on from being a one-trick pony in the software game. It is now diversified with new revenue streams, which will take it well into the 21st century as a tech leader. And all the work from home is very good advertising for the company and its variety of products.

As Bill Gates’ friend Warren Buffett taught him, compounding is the secret to investing. Reinvesting that dividend will grow your position in this great growth stock over time.

Costco Wholesale (COST)

Stocks to Buy: Costco Wholesale (COST)

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Dividend Yield: 0.9%

Costco Wholesale (NASDAQ:COST) has a couple things in common with MSFT stock. First, it is a long-term beneficiary of the Covid-19 pandemic. And second, it has a small but solid dividend.

This big-box wholesaler is the kind of go-to place when acts of nature hit. Everything comes in bulk so the shelves are prepared for big buys. And it’s members only, which keeps out the general public. Members get the advantage to stock up without having to fight in stores in a sea of humanity.

It also is a very powerful buyer. Its house-labeled wine operation is one of the biggest wine buyers in the U.S. That gives it powerful leverage with growers that means good pricing on quality wines.

And the same goes for many of its products. The prices are low and the quality is above average. That will also serve it well when the economy slows down and people are more cost-conscious. And in any economy, it’s a business model that’s hard for smaller upstarts to compete with, which is the kind of “moat” I look for at Growth Investor.

The stock is up 23% in the past 12 months and is flat over the past 3 months.

Cohen & Steers (CNS)

Stocks to Buy: Cohen & Steers (CNS)

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Dividend Yield: 4%

Cohen & Steers (NYSE:CNS) is an interesting company that started in 1986. It initially began as a firm that specialized in building real estate portfolios for investors.

Cohen & Steers isn’t a real estate investment trust (REIT). It operates now as a fund manager that builds portfolios of real estate, infrastructure, commodities and other assets and then offers them to investors.

It has created a number of boutique funds that have assets around the world. But its origins have been in real estate and it has competed with REITs both institutionally and in retail, so it knows the attraction of dividends. Most of its funds offer REIT-like dividends as well.

And during the past year, the stock is only down 15%. CNS stock provides a safe and respectable 4% dividend.

Zoetis (ZTS)

Stocks to Buy: Zoetis (ZNS)

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Dividend Yield: 0.8%

Zoetis Inc (NYSE:ZTS) is an animal health medicine company that has been around since 1952.

If you can recall about 6 months ago, the big disease that everyone was talking about was African swine fever (ASF) and how it had slammed the Chinese economy. It had a devastating effect on other countries as well, but China consumes more pork than any country on the planet, so it was the poster child of ASF.

ASF is the pig version of Covid-19, except the mortality rate is 100%. If a pig contracts the virus it is destroyed before it can affect other pigs.

ZTS is working on a vaccine for ASF.

Another growth aspect of its business is the huge growth trend of people spending money on their domestic pets. ZTS is also heavily involved in this sector.

The stock has been an overall nice winner for us at Growth Investor, where I first recommended it back in 2017. It’s kept its head above water for the last 12 months, even after most of those gains were eroded in the past month. Its dividend is slight, at 0.8%, but it gives you a lot of long-term growth potential in a growth industry that many investors have overlooked until recently.

Safehold (SAFE)

Stocks to Buy: Safehold (SAFE)

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Dividend Yield: 1.3%

Safehold (NYSE:SAFE) is a REIT that focuses on ground leases. That means SAFE leases a tenant a piece of land, and the tenant then develops the property. At the end of the lease, the tenant gives the property to the landowner.

And best of all, this is a triple-net lease, which means the tenant pays all taxes, maintenance and insurance costs while it’s under lease.

The average size deal SAFE works on is between $15 million and $500 million and the property makes up about 35%-40% of the value. That means, the land is usually in good locations where the businesses can best thrive.

SAFE also has a diverse portfolio of tenants, which helps in times like these. It has office, multifamily, student housing, retail and industrial. That diversification means if one sector is lagging, another is likely going strong.

And having tenants build their own property means these leases are long term, so there’s plenty of stability.

Amazingly enough, SAFE is actually up 160% in the past 12 months and is still delivering a 1.3% dividend.

ManTech International (MANT)

Stocks to Buy: ManTech International (MANT)

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Dividend Yield: 2.2%

ManTech International (NASDAQ:MANT) is an IT and technical services solutions company that focuses its business on the defense, intelligence and cybersecurity sectors.

It is a highly specialized contractor that works with government agencies to make sure that communications are secure and that the U.S. can process information and data from other sources.

Fundamentally, MANT is all about what is called C5ISR (command, control, computing, cybersecurity, communications, intelligence, surveillance and reconnaissance). It is one of the most robust sectors of the defense and intelligence communities, and even has implications for the newly formed Space Force.

The stock is steady as she goes, up nearly 12% in the past year and delivers a dependable, inflation-beating 2.2% dividend. Plus, tech companies stand to benefit from the powerful advancements happening now with wireless technology.

Carlyle Group (CG)

Stocks to Buy: Carlyle Group (CG)

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Dividend Yield: 5.2%

Carlyle Group (NYSE:CG) is an alternative asset management company that has been around since 1987. And it’s not odd its headquarters is in Washington, DC because some of its biggest clients are the ones who are in the corridors of power in the nation’s capital.

Before it went public, it built its reputation on A-list clients like the Bush family and Saudi Arabia’s royal family. It was a very exclusive asset manager.

Over the years it has broadened that client list but it is still a relatively boutique firm compared to many of its Wall Street rivals. Its market capitalization is just over $10 billion currently.

The stock has been hit but remains up in the past 12 months by 5%. And it delivers a reliable and generous 5.2% dividend.

CG and many of these other stocks are special situations; there’s also an exciting, overarching trend gearing up that growth investors would be wise to take advantage of now.

The 5G Buildout Is an Incredible Opportunity for Investors Right Now

Within two years, most cell phones will be 5G enabled and be able to wirelessly handle television streaming. With 5G, we’ll have cable modem speeds on any device; no need to plug in. That’s a big deal for rural areas … the very same areas that are also key to President Donald Trump’s reelection. So, by pushing 5G over the goal line, Trump will deliver a big win for his base — and strike a blow against Chinese rivals like Huawei Technologies.

But, in the big picture, 5G is about much more than trade wars and faster downloads. Because 5G is 100 times faster than 4G, it’ll allow your internet devices to work in real time. That advancement is a game changer for tech companies.

With the 5G infrastructure market set to grow at an annual rate of 67% over the next 10 years, the entire market will go from $780 million to nearly $48 billion. This buildout is where I see opportunity with 5G stocks now.

Cable companies can do their best to fight back with fiber optics … but they can’t compete with the convenience of a smartphone, once it’s got ultra-fast 5G. That’s how my 5G infrastructure play will capture more market share from the broadband cable companies.

The stock I’m targeting is a favorite on Wall Street, and it has strong fundamentals, too — making it an A-rated “Strong Buy” in my Portfolio Grader system.

Click here to watch my new, free briefing on this extraordinary technology and the opportunity with 5G stocks.

When you do, you’ll see how to claim a free copy of my new stock report, The Netflix of 5G, which has full details on this company — and what makes it such a great investment.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2020/03/7-a-rated-stocks-to-buy-after-the-seismic-market-shift/.

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