economy
Play defense with these dividend stocks, says Jefferies
If the Iran war drags on longer than expected, investors may want to consider defensive stocks that pay dividends, according to Jefferies.
TL;DR
- Jefferies recommends defensive dividend stocks due to potential for a prolonged Iran conflict and rising oil prices.
- A sustained oil shock could lead to stagflation, impacting S&P 500 growth, margins, and earnings.
- Defensive yield stocks with low beta, high dividend yields, and stable earnings are favored.
- Key criteria include market cap over $10 billion, dividend yield over 3%, and positive free cash flow.
- PepsiCo, Verizon, Public Storage, and Target are mentioned as examples of suitable stocks.
- These companies offer attractive dividend yields and are undergoing efforts to improve efficiency or operations.