Stocks To Buy During Stock Market Correction


◊ Best Stocks To Buy During Stock Market Correction ◊


Here are 3 of the best stocks to buy to ride out a stock market correction. Most of these revolve around the idea of investing in high-quality companies that have good cash flows and business health.


1 – Coca-Cola

Coca Cola Shares Reach 4-Year High After After Q1 Earnings Announcement

MARKET VALUE: $222.5 billion

DIVIDEND YIELD: 3.0%

Market pundits often suggest consumer staples stocks when the market seems ready to pull back. Companies in this group enjoy stable demand in good times and bad and their stocks tend to pay good dividends, making them among the best stocks to help soften the blow of a market downturn. However, just because a company is in this sector does not mean it can stave off the bears. It must offer solid financial health and good market share in its industry.

David Bickerton, president of MDH Investment Management in Ohio, says Coca-Cola (KO, $52.03) is well-positioned within the sector, has a “fortress” balance sheet and pays a strong dividend. That payout has increased without interruption for 57 consecutive years…

Coca-Cola cruised to new all-time highs in July thanks in part to organic growth through its Dasani brand of seltzer waters. Its acquisition of British international coffee chain Costa Coffee – which had nearly 3,900 locations by the end of 2018 – is proving to be a major contributor to growth through its stores and thousands of vending facilities.

Coca-Cola’s revenues still are growing outside of the United States, too, despite the generally slower global economy – again thanks in part to Dasani.

A strong U.S. dollar is a headwind for Coca-Cola, as it weakens the effect of the company’s overseas earnings. But should the dollar weaken, that would provide another lift to Coke’s business.


2 – Sherwin-Williams

Paintbrush balancing on open tins of paint, overhead view, close-up

MARKET VALUE: $47.3 billion

DIVIDEND YIELD: 0.8%

One of the least expensive home improvement projects is a fresh coat of paint. And with demand for home improvement proving to be less cyclical than in the past, Izet Elmazi – senior portfolio manager with Bristol Gate Capital Partners in Toronto – thinks Sherwin-Williams (SHW, $512.95) is the right stock for stability and growth.

Sherwin-Williams is a global leader in making and selling paints, coatings and other similar products. Elmazi believes the company is financially sound thanks to high free cash flow generation and an improving balance sheet. SHW has generated $17.7 billion in revenue over the past 12 months with 43% gross margins.


3 – Royal Bank of Canada

canada-bank

MARKET VALUE: $111.6 billion

DIVIDEND YIELD: 3.9%

Royal Bank is a global enterprise, operating in 42 countries including Canada and the United States. The company posted more than C$3.2 billion in profits last quarter and is one of Canada’s most valuable brands. It also has raised dividends for eight consecutive years, at a clip of about 8% annually over the past five years.

Royal Bank, like many other Canadian banks, began its current dividend growth streak near the end of the financial crisis – just when markets were starting to recover. But the important takeaway is that Canadian banks’ dividends were starting from higher ground. None of the Canadian “Big Five” banks executed a dividend reduction, and in fact, none had to take a bailout.


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As Royal Bank’s stock fell from roughly $49 to under $25 during the heat of the crisis, the stock recovered back to its original $49 price point in less than a year. Compare this to Bank of America (BAC), which currently trades at $29 per share but topped out above $54 in 2007.

… “Canada’s extensive regulatory environment is what saved these banks from insolvency, and is one of the primary reasons they are such a valuable asset to any investors portfolio today” …

4 Stocks To Buy Today … { August 2019 }


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< StockMarketNews.Today > … Stocks to buy in August 2019 … Here are 4 stocks we believe fit the bill and are worth considering for your portfolio:


1 – Cisco Systems (CSCO) is the dominant player in internet switches and routers, but about 40% of overall sales comes from steady revenue streams in its software and services businesses. Cisco’s $34.6 billion in cash and short-term investments gives it plenty of latitude to raise dividends or make acquisitions. The stock yields 2.5%. In May, the company reported that fiscal third-quarter earnings were 13% above the same period in 2018. And company executives said during a quarterly earnings call that Cisco has slashed its manufacturing in China, reducing potential damage from a trade war between the U.S. and China.


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2 – Danaher (DHR) is a health care equipment maker on a hot streak. Shares are up nearly 30% so far in 2019 and trade at 26 times projected year-ahead earnings. And yet, says Mike Bailey, director of research at FBB Capital Partners, the market doesn’t fully appreciate the growth potential stemming from Danaher’s recent mega-acquisition of General Electric’s biopharmaceutical business. The unit is a leading provider of instruments, equipment and software supporting the discovery, development and manufacture of complex, biologic drugs.


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3 – Walmart (WMT)… Not many retailers can give Amazon.com a run for its money, but Walmart is giving it a go. Analysts at CFRA bumped up their rating on the stock from “buy” to “strong buy” after the retailer reported boffo first-quarter earnings, including a 37% jump in U.S. e-commerce sales. The retailer also announced plans to introduce free next-day shipping on orders over $35. “We think the offer will help it take e-commerce market share from Amazon,” say CFRA analysts. They see the stock trading at $115 within the next 12 months.


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4 – Zoetis (ZTS)… Ahead of the 2020 election, talk of potential Medicare and Medicaid changes, among other things, has spooked many health care investors. But Zoetis, the world’s biggest animal health company, is immune to election-year rhetoric. Every major division of its business, which makes vaccines, medicine and health products for a diverse lineup of livestock and pets, expanded in 2018. Managers at Eaton Vance Worldwide Health Sciences fund like the firm’s predictable revenue and its growing overseas footprint.