Hedge funds are rapidly reducing their exposure to global information technology stocks, with the latest selloff marking the fastest decline in six months. Most of the selling is reported to be in semiconductors and semiconductor capital equipment. Online data indicate that major hedge funds have cut their exposure to the information technology sector to a stunning 16.4%, the lowest level in over five years. The culprits responsible for the sales are the same ones we have been discussing since the start of the year. Stock valuations are rich; concerns about tariffs, lowered earnings expectations, macroeconomic and geopolitical risks, and a host of other factors prompted hedge funds to be voracious sellers.
The bottom line as we kick off the second quarter, and with first-quarter earnings reports right around the corner, is that for baby boomers, retirees, and anybody else who cannot afford a big market correction or, God forbid, a crash, now is the time to move a substantial amount of assets to safer quality dividend stocks that will continue to pay their quarterly dividends as scheduled regardless of what happens in the stock market. For younger investors who have the advantage of time on their side, if you strongly believe in the companies in your portfolio, then add to your holdings if they move significantly lower.
Needless to say, just because hedge funds are selling tech stocks in 2025 does not mean that the future still isn’t incredibly positive for investors and citizens in the United States, regardless of their age, social status, or any other benchmark. Many of the president’s ideas and programs are highly favorable to corporations in the United States. While the short-term issues and implementation may be rocky, the long-term results are expected to be very positive, supporting domestic growth.
Our 24/7 Wall St. high-yield dividend stocks provide a blue-chip safety net that makes sense, regardless of your age and investment strategy. They all pay a dividend of 4% or higher and have consistently raised their dividend payments. Lastly, these stocks have all been assigned Buy ratings by the top Wall Street investment banks we cover.
Why do we cover high-yield safety net dividend stocks?
Our 24/7 Wall St. safety net high-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. In addition to their large-cap strength and years of dependability, they remain a sensible choice in a challenging and volatile market.
Bristol-Myers Squibb
Bristol Myers Squibb Co. (NYSE: BMY | BMY Price Prediction) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. It discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide. This remains a solid pharmaceutical stock to own in the long term, offering an outstanding entry point with a reliable dividend.
The company offers products in:
- Hematology
- Oncology
- Cardiovascular
- Immunology therapeutic classes
Bristol-Myers Squibb products include:
- Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
- Opdivo for anti-cancer indications
- Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
- Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis
The company also provides:
- Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
- Yervoy for the treatment of patients with unresectable or metastatic melanoma
- Abraxane, a protein-bound chemotherapy product
- Implicit for the treatment of multiple myeloma
- Reblozyl for the treatment of anemia in adult patients with beta-thalassemia
Truist Financial has assigned a Buy rating to the shares, with a target price of $65.
Dominion Energy
Many of the Wall Street firms we cover remain optimistic about utilities despite the sharp move higher over the past year. Dominion Energy Inc. (NYSE: D) is popular with hedge funds. This American energy company is headquartered in Richmond, Virginia, and operates through four segments:
- Dominion Energy Virginia
- Gas Distribution
- Dominion Energy South Carolina
- Contracted Assets
The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.
The Gas Distribution segment engages in
- Regulated natural gas gathering
- Transportation
- Distribution and sales activities
- Distributes nonregulated renewable natural gas
This segment serves residential, commercial, and industrial customers.
The Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.
The company’s portfolio of assets included approximately:
- 30.2 gigawatts of electric generating capacity
- 10,500 miles of electric transmission lines
- 85,600 miles of electric distribution lines
- 94,200 miles of gas distribution lines
Dominion serves approximately 7 million customers
Barclays has an Overweight rating with a target price of $54.
Energy Transfer
Energy Transfer L.P. (NYSE: ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure. It owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.
The company is a publicly traded limited partnership with core operations that include:
- Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
- Crude oil, natural gas liquids (NGL), and refined product transportation and terminaling assets
- NGL fractionation
- Various acquisition and marketing assets.
After acquiring Enable Partners in December 2021, Energy Transfer owns and operates more than 114,000 miles of pipelines and related assets in 41 states, covering all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG Company, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco, and the public partner interests and 39.7 million standard units of USA Compression Partners.
Morgan Stanley has assigned an Overweight rating, accompanied by a hefty $26 target price objective.
Kraft Heinz
Kraft Heinz Co. (NYSE: KHC) is the third-largest food and beverage company in North America and the fifth-largest globally. Even in difficult times, everyone has to eat, and this company consistently benefits. It was formed via the merger of H.J. Heinz and Kraft Foods.
The company is a leading global food company with estimated annual revenues of $25 billion from well-known brands such as Kraft, Heinz, Oscar Mayer, and Maxwell House.
Kraft Heinz is North America’s third-largest food and beverage manufacturer. It derives 76% of its revenues from that market and 24% from the International segment.
The company’s additional brands include:
- ABC
- Capri Sun
- Classico
- Jell-O
- Kool-Aid
- Lunchables
- Ore-Ida
- Philadelphia
- Planters
- Plasmon
- Quero
- Weight Watchers
- Smart Ones
- Velveeta
Bernstein has a Buy rating on the stock with a $34 target price.
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