Stock Market Looks Very Overbought: 5 Safe Stocks to Buy Now
Any way you look at it, the market has run for a very long time. In fact, it has been more than eight years since the S&P 500 hit an ominous intraday low of 666 in March of 2009. While everybody has been caught up in the Trump rally that has pushed the Dow Jones Industrial Average to almost 21,000, the fact of the matter is we appear to be very overbought on a short-term basis and could be in for a sizable correction.
With that in mind, if you have money to put to work, or have tax-loss selling that could raise funds, there are some good blue chip dividend stocks that are reasonably safe and offer good dividends. We screened the JPMorgan research database and found five that look good for the slow summer trading and the rest of 2017.
This top company remains a favorite on Wall Street. Bristol-Myers Squibb Co. (NYSE: BMY) is a global pharmaceutical company focused on discovering, developing, licensing and marketing chemically synthesized drugs or small molecules and biologics in various therapeutic areas, including virology comprising human immunodeficiency virus infection (HIV), oncology, neuroscience, immunoscience and cardiovascular.
The company recently announced that Biogen will pay $300 million upfront to Bristol-Myers to license a palsy drug with a $2 billion market opportunity and the potential to use that to treat Alzheimer’s. The company will pay a total of $410 million in milestone payments and a tiered double-digit royalty to license a drug known only as BMS-986168. The drug just completed Phase 1 testing in progressive supranuclear palsy.
Shareholders receive a 2.83% dividend The JPMorgan price objective for the stock is $66, and the Wall Street consensus target price is $57.18. The shares closed trading on Thursday at $55.14 apiece.
This company remains the undisputed leader in the home improvement retail category. Home Depot Inc. (NYSE: HD) is the world’s largest home improvement specialty retailer, with 2,270 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.
Home Depot stores sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance and professional service programs to do-it-yourself (DIY), do-it-for-me (DIFM) and professional customers.
Home Depot could continue to be a benefactor from the huge, ongoing rebuilding efforts across the United States as a result of flooding and tornadoes that have caused extensive damage over the past year. With summer right around the corner, there is always a chance for more storms.
Home Depot investors receive a 2.28% dividend. JPMorgan has a $167 price target, and the consensus price objective is $158.54. Shares closed Thursday at $156.20.
This leader in semiconductors is working hard to scale away from dependence on personal computers, and the Internet of Things (IoT) is a big part of the shift. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide. The company’s platforms are used in various computing applications comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.