Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Five Stocks That Generate Return and Peace of Mind

Details

  • Description

    Marketwatch Columnist Jeff Reeves on where to invest in today's market.

  • Duration 4:53
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Early a couple of minutes ago.

Well do you -- -- suffering whiplash from wild market swings these days -- interest in some stock picks from Jeff Reeves.

Editor in now of an he's editor at that's a place dot com is also MarketWatch columnist Jeff.

People are nervous out there you recently wrote an article which you focused not five stocks.

But generate both return and a little bit of peace of mind for investors -- -- the common thread weaving through all plot.

Well I kind of feel an environment like this out -- should stick with safe haven stocks got a little -- -- -- companies that are gonna say stable to the long term those typically air big consumer brands companies that are cash rich companies that.

-- enough revenue to pay dividends and keep afloat so I think investors He should kind of -- towards those environment are those investments in this environment.

You know -- you look at how those stocks are valued relative to the rest of the market as well because your first stock that you like is McDonald's.

Just hitting an all time high here recently so even though you're advising people of this is the perfect kind of a stock nice yield stable you know global revenue streams.

But maybe wait for little bit of a pullback.

Yeah exactly I mean you know if you look at McDonald share price it's it's been nowhere to go but up for the -- years and -- took over 2000 sports tripled.

It's doubled since 2007.

So there is kind of a fear that McDonald's got to get the -- He is pretty high right now I think it's about fifteen.

But the bottom line is this company knows how to protect its balance sheet even the revenues have only grown by about 3% annually for the past couple years.

Our products are growing at 14% annually that's you know Scott 3% dividend on top of that it knows how to make sure is -- making more money I even if revenues -- -- the charts.

You know last week we saw a little bit of of a hit for McDonald's because global -- -- sales didn't really impress Wall Street as much.

But it's the hundredth consecutive month the same -- sales growth they were up 3.5 percent.

So you know if you look at for growth there aren't a lot of alternatives right now and I think even if you don't have expectations that it there's a lot -- McDonald's right now.

Alright great American company Hershey is another one that you like bloody like Hershey.

Well -- she's -- -- stock here before they'll because I in this kind of environment.

Of people can't go to Aruba they can't go to Europe on vacation so they can find small comforts chocolates perfect example -- -- -- it has actually seen.

Two consecutive quarterly earnings reports and -- very impressive.

They -- guidance on the -- actually because unlike other packaged food companies they had a price increase it is really out and keep our margins pretty high it is commodity costs go out so.

Hershey is up almost 1% so far you are today again you might become a behind the top if you wait for a pullback I do think her she's going to be a good pick for you for the long term.

The sweet stock I like that Jeff.

They look also want these pharmacies because big pharma is always a safety play everyone says look get in there they're gonna give you a good yield are not gonna move a whole lot up or down.

But how do you pick one -- of the bonds because they all seem to be in very similar boats you like Bristol-Myers.

Yeah I think that's a great question that a big pharma they all have really good yields are all typically bigger than 4% which is a great dividend even if stocks flat -- give 4% return on your investment but.

The -- -- like Bristol-Myers about some of its -- is because -- 2007.

With some big pharma -- flop from peak valuations Pfizer Merck.

They're down thirty to 40% Bristol-Myers is flat market is down 15% since -- -- that same time so.

You know it was great got a stock that's gonna delivered 2030% gains year there's a lot to be set for a company that's gonna hang tough in a tough environment I think Bristol-Myers is that stock.

There's been some really good news recently from the drug pipeline.

You know patent expirations -- in a lot of these companies.

Versa Meyers got a great report they could have the next big the stroke of blood thinner medication and -- -- could be a Blockbuster.

They have a lot of niche -- to which are very small patient pools -- very high cost drugs.

Melanoma and kidney transplant medications which can really pay off for themselves.

Big dividend good drug pipeline I like Chris -- -- non farm.

All I did you also like Colgate-Palmolive and I want to get to your last stock through a unique is the time.

And it's it's ironic or it's it's -- the because it's the most boring of all the flights cost Con -- -- you got a lot of grandparents stock that's been stuck in their portfolio for years.

But you like because it's safe and it could be and there's no sock on earth that He give you more open almost guaranteed dividend like con again.

Yeah I mean it wouldn't when you look at stocks it's great had a big consumer brown I think dolls ever knows McDonald's the less you pay your monthly -- -- -- -- you find and you know they are with him in the tristate area around New York but.

The thing about Consolidated Edison that is so attractive is that they had increased our dividend consecutively for 36 years strength of dating 37 -- to the last report I have to do the math.

But they pay dividends since 1885.

This is a dividend company that you can bank on besides the fact that.

You know not to -- words but -- -- basically legalize monopoly here they had no competition.

They have really cash -- business reliable revenue streams from the customer base it isn't going anywhere.

So it's not gonna -- -- -- house would like 50% annual returns but if you -- good solid dividend -- for the long term I can't that is definitely that might take a look at.

And also his -- hitting a 52 week high that is the quintessential said it and forget it stock.

And reinvest those dividends no question Jefferies.

Load More