- Altria (NYSE: MO) ($67.83; -$0.44; -0.6%) has a 14 P/E ratio and a 4.4% dividend yield. This was also one of Cramer's TOP 2007 PICKS, but for different reasons.
- Anheuser-Busch (NYSE: BUD) ($49.92; +$0.20; +0.4%)as the beer drinkers play -- don't people drink more beer when they are stressed? The 18.9 P/E and the 2.7% dividend yield are better than most beverage plays.
- ConAgra Foods (NYSE: CAG) ($25.53; -$0.04; -0.15%) has a 16+ P/E and its 2.8% dividend yield is higher than most food suppliers.
- Johnson & Johnson (NYSE: JNJ) ($61.76; +$0.10; +0.2%) as one of the more beaten up drug and medical names, plus the personal care products angle. The 17 P/E and the 2.7% dividend yield aren't going to kill you.
There are always other choices in smaller cap names, but investor mentality tends to go for the strength in numbers. Small caps may also not be familiar enough and so most tend to flock to the go-to names that are more established, hence defensive.
Jon C. Ogg produces the Special Situation Investing Nesletter and he does not own securities in the companies he covers.
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Reader Comments (Page 1 of 1)
9-07-2007 @ 3:46PM
Michael Schneider said...
Defensive stocks--YES! I would add some utilities maybe with the prospects for lower rates although some are subject to regulatory trouble. On the food stocks though you have to be careful because of rising costs-- National Beverage (FIZZ) for example got hurt by rising costs in the latest Q and the stock got hit today. (Those with pricing power and international operations are better positioned). Tobacco's have other concerns but good dividends and no exposure to rising food costs.
Dr. Michael Schneider runs several investment Web sites including http://www.Barrelomoney.com and edits the Barrel View weekly e-mailing.