With the markets looking as if the bubble is about to burst many investors are seeking cover in safe and diversified investments.
Some have gone to Gold as a safe precious metal which does not really increase much in value yet is a very safe hedge against inflation and stock market crashes.
Others are choosing to park their funds in safe bonds like government treasury bonds which are guaranteed by the US government.
Still many would like to see how far this bull run market can go and if they can still earn good returns despite the turbulence in the market.
For these people diversification of their stock portfolio is paramount. Without some good defensive stocks it seems that the risk of loss in the current stock market conditions, outweigh the rewards.
Here are three stock picks that should keep your portfolio safe(r) in 2019.
The Kraft Heinz company (KHC) with it’s almost 5% dividend yield (4.9%) is a futures stock because it is a stock that people will need regardless of the economy. One way or the other people will need to buy and eat food so this is a good type of stock to sure up your investment portfolio.
What’s more this stock is down and it is a good time to purchase now while you have the opportunity to do so at a lower price.
The fundamental business is sound and the revenues and profits of the company have been good now for three years running.
Another good stock is Bayer (BAYRY) with it’s high 4.4% dividends and currently trading at a major discount price, due to it’s Monsanto acquisition which has had to pay a big fine in damages.
This has actually come full circle and created quite a good opportunity for savvy value investors, because while the stock is down today, the fundamentals for the company are good and will recover.
When market sentiment shifts it is looking like it could be a big win for Bayer stock.
And finally good old Coca-Cola stock. This is one of Warren Buffett’s favourites and is looking very good for a buy right now. The yield is at 3.1% and currently the momentum is driving the stock price higher by the day.
While often we look for stocks which are going down in value too buy in on. This is one of those stocks which may well be best to buy now and make good as the momentum and demand for this stock increases.
These are three stocks that you should consider adding to your portfolio, or buying more of, as they pay good dividends and are stocks that are somewhat recession proof.
If there is a major downturn in the market and your AAPL stocks are no longer going up, you may well have thanked your lucky stars that you had some good futures and solid dividend paying stocks to fall back on.