The equity markets have been volatile in recent months. Some investors have even speculated that the markets will continue to drop and the world economy is at risk. This is a very worrying time for many. Still, some great smart stocks can help you stay afloat during this difficult time and find opportunities to grow your portfolio instead of sinking with all of your fellow investors.
The smart stocks to buy list is based on the following criteria:
- The stock has a price-to-earnings (P/E) ratio below 20 and a dividend yield above 1%
- The stock has been on an upward trend for at least six months
- The company has shown promising growth in recent years
- There is no major risk factor associated with the stock
These are the best stocks to buy on this latest market correction. These stocks have shown impressive returns and are set to grow even further in the future:
- Unilever PLC (NYSE:UL)
- Citigroup Inc. (NYSE:C)
- Intel Corporation (NASDAQ:INTC)
- Caterpillar Inc. (NYSE:CAT)
- T. Rowe Price Group (NASDAQ:TROW)
- Walgreens Boots Alliance (NASDAQ:WBA)
- Automatic Data Processing (NASDAQ:ADP)
- Walmart (NYSE:WMT)
- Target Corporation (NYSE:TGT)
- Lowe’s Companies (NYSE:LOW)
Smart Stocks: Unilever PLC (UL)
Unilever is a multinational corporation that produces food, beverages, and household and personal care products. It has a strong portfolio of well-known brands such as Axe, Lipton, Dove, Lux soap, and Ben & Jerry’s ice cream.
The company has a long history dating back to 1885 when British margarine producer William Unilever founded it in Rotterdam, Netherlands to local supplier dairies.
Unilever’s stock price has been rising in recent years due to its high revenue growth and strong cash flow. Its shares are also relatively cheap, with a forward P/E ratio of 17.12 times. In addition, Unilever is one of the best dividend stocks and it has an excellent dividend yield. It has a strong balance sheet, steady cash flow, and long-term brand strength that give it all the validity it needs.
Citigroup Inc. (C)
Citigroup provides financial services, such as banking, credit cards, private equity, and insurance products and services to consumers, small businesses, corporations, and large corporations worldwide.
The company has expanded its focus to include wealth management services, as well. They provide everything from advisory and private banking to government bonds and international investments.
This company has been around for more than 200 years and has made many changes throughout its existence. The company has changed over time by adding new technologies to its business. Due to this approach towards innovation, Citigroup is currently considered one of the top Wall Street firms in the world.
After their latest earnings report, Citigroup shares are trading at a deeply discounted rate. This is because of their declining profits in the fourth quarter (Q4). Citigroup’s net income decreased year-over-year (YOY) by 26%. If a dip in net income occurs, it will shake anyone trying to make serious money. Therefore, the fact that markets are spooked makes sense.
However, the company did offer some explanations for the numbers. The quarterly results showed a pre-tax impact related to the divestiture of Citi’s consumer banking businesses in Asia. Plus, Citigroup recorded expenses of $13.5 billion for the quarter, up 18% over the year-ago period. Considering the bank is established, you can invest in it without fear. Any issues will only be temporary.
Smart Stocks: Intel Corporation (INTC)
Intel is a stock that has been on the rise. It has been in the top 10 stores for years and has experienced a lot of growth.
Intel is one of the leading companies in the computer industry. It is known for its innovation and leadership in technology, manufacturing, and sales. Intel also provides semiconductor products to other companies for their use and for end-users.
The company’s innovative technology has allowed it to lead the industry and is a renowned name in microprocessors. It has become synonymous with high-performance computing and PC processors. Still, it also makes data center processors, graphics processing units (GPUs), mobile processors, embedded processors, and more recently, artificial intelligence (AI) chips for use in personal computers and servers.
Some analysts believe Intel is falling behind rivals AMD (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA). In recent years, it has lost a lot of market share to those two companies. However, with the launch of new chips, there is hope that we will see a comeback soon.
Caterpillar Inc. (CAT)
For over 130 years, Caterpillar has been the leading heavy construction and mining equipment manufacturer.
Caterpillar is one of the most recognizable brands in the world, with its iconic yellow logo on a black background. They have been known to create high-quality, durable products used in various industries, including construction, mining, forestry, transportation, and farming.
Caterpillar’s business model includes manufacturing, selling finished products to customers, providing after-sale services, such as parts support and service contracts, financing equipment sales through debt or equity markets, and selling raw materials to other companies. The company has maintained its position by making good-quality, durable, and reliable products.
However, despite its top-notch brand, the stock has performed sluggishly in the last few years. That is because attention was on growth stocks. However, the market sentiment is changing after the recent corrections. Investors are now returning to safer stocks, and CAT is among the best. On top of all this, the company counts itself among the Dividend Aristocrats.
Infrastructure is a huge part of U.S. President Biden’s current program. This includes preparing the nation for a greener future and improving the country’s infrastructure to create a better quality of life for Americans.
Smart Stocks: T. Rowe Price Group (TROW)
T. Rowe Price is a global investment company that manages assets worth over $1.54 trillion. They are known for their long-term approach to investing and their commitment to socially responsible investing.
T. Rowe Price has been around since 1937, so they have some experience in the investment arena. They are widely known as one of the best companies in their industry.
One of the best ways to make sure you’re investing in an ideal dividend share is by looking for ones with ample free cash flow. These companies need to be controlled by capable management who can fund their dividends without putting too much pressure on their business.
Assets under management growth is gaining momentum as the firm’s active investment strategies and focus on retirement markets are driving performance. That has allowed the company to maintain a high payout throughout its history. Therefore, all of the bases are covered here.
Walgreens Boots Alliance (WBA)
Walgreens Boots Alliance is an American multinational pharmacy and retailing company that operates as a holding company. It is the largest drugstore chain in the world.
Walgreens Boots Alliance has been on a path for growth for many years. It grew its global footprint by building partnerships with other companies with impressive revenue.
For more than 100 years now, Walgreens Boots Alliance has been profitable. For the past four decades, it has paid out dividends. One of the things that has made Walgreens Boots Alliance one of the most stable stocks is their long history on American shores and their consumer staple status.
Smart Stocks: Automatic Data Processing (ADP)
The world’s largest payroll processing firm, ADP, is using AI to process payroll data.
ADP has made substantial investments into more automated and efficient methods in order to reduce their costs and increase their margins.
ADP has remained popular over the years even through tough economic times.
It is expensive for businesses to change service providers and people want a degree of stability. Instead of keeping a consistent income and cash flow, you can improve your business and achieve a competitive advantage by hiring ADP for its payroll tasks. The company’s business model has allowed them to grow its dividends consistently. It is has been doing so since 1975.
Walmart is one of the biggest retailers in the world. It has a large number of stores in the U.S., Canada, Mexico, and China.
Walmart is a popular destination for consumers looking for low-cost goods and services. The company has been around since 1962 when Sam Walton opened up his first store in Rogers, Arkansas.
Walmart stores are spread out across the country and serve as an important part of many communities’ infrastructure.
The world’s largest company by revenue gives you an annual dividend yield of 1.51%. That might not seem huge. However, They have an extensive presence and are one of the largest chains in the U.S., so that should give them some brownie points. You will never fear running out of cash to maintain the payout.
Smart Stocks: Target Corporation (TGT)
Target is a retailer that offers a wide range of products for the home, furniture, clothing, and more.
The company also provides its customers with useful information about these products by giving detailed descriptions and helpful videos.
Target has been in business since 1902. It started as a small department store in Minneapolis called Dayton’s Dry Goods Company. Target has grown into one of the largest retailers in America, with 1,926 stores across the U.S. today.
It has hiked its payout annually since 1972. Much like Walmart, it is a cash flow machine. Maintaining an increasing dividend policy for over 50 years is no small feat. Plus, Target’s payout ratio is conservative at 25.59%, leaving plenty of room for potential volatility.
Lowe’s Companies (LOW)
Home Depot (NYSE:HD) and Lowe’s are two of the largest home improvement stores in the U.S. They both offer a wide range of products to their customers, but they also have some key differences.
Home Depot is a company that has been around for a long time. It offers services like home improvement and electrical products to its customers. Unlike Home Depot, Lowe’s is a more traditional home improvement store.
Usually, all the focus is on Home Depot. It is a bigger brand and has 2,300 stores, while Lowe’s is a bit behind. However, Lowe’s is a better dividend stock than Home Depot. The latter also pays out dividends, but they are not as high as Lowe’s, which has hiked its payout every year for more than 50 years. With this in mind, it is certainly a solid investment.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.