European markets ended in the positive territory yesterday. But U.S. markets fell after the Fed rate decision with the S&P losing 1.09%. Equity markets this year have been extremely volatile. One day it is China and the next day it is crude oil and the following day it is growth worries. Then repeat this sequence in a cycle.
Some investors may be wondering if there are stocks where they can shelter to escape from the crazy roller-coaster ride. Before we get to the “safe” stocks here are a few points to consider:
- Despite big losses it is wise to avoid Chinese equities.
- Highly speculative and high P/E tech stocks can easily get crushed should the current market movements turn violent. So stay away from them.
- European utilities excluding UK can also be avoided.
- Commodity stocks are not cheap or value plays now just because they have fallen 50% or more.
- Panicking and selling out when markets are down is a bad move.Staying strong and keeping calm is the best strategy to achieve one’s long-term goals.
Some of the stocks that can offer shelter during adverse market conditions are listed below with their current dividend yields:
1.Company: Fresenius Medical Care AG & Co (FMS)
Current Dividend Yield: 1.02%
Sector: Health Care Providers & Services
Country: Germany
2.Company: Reckitt Benckiser Group plc (RBGLY)
Current Dividend Yield: 2.20%
Sector: Household goods
Country: UK
3.Company: Novo Nordisk A/S (NVO)
Current Dividend Yield: 1.38%
Sector: Pharmaceuticals
Country: Denmark
4.Company: Henkel AG & Co KGaA (HENKY)
Current Dividend Yield: 1.52%
Sector: Household Products
Country: Germany
5.Company: Diageo PLC (DEO)
Current Dividend Yield: 3.17%
Sector: Beverages
Country: UK
6.Company: Nestle SA (NSRGY)
Current Dividend Yield: 3.16%
Sector: Food Products
Country: Switzerland
7.Company: Unilever PLC (UL)
Current Dividend Yield: 3.10%
Sector: Food Products
Country: UK
8.Company: Heineken NV (HEINY)
Current Dividend Yield: 1.57%
Sector:Beverages
Country: The Netherlands
9.Company: Imperial Tobacco PLC (ITYBY)
Current Dividend Yield: 2.08%
Sector:Tobacco
Country: UK
10.Company: National Grid PLC (NGG)
Current Dividend Yield: 5.39%
Sector: Multi-Utilities
Country: UK
Disclosure: Long RBGLY
