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"In the current volatile market, you can't go wrong by making your portfolio more defensive," says Glenn Rogers, who notes he has been "on the hunt for stocks that are fairly bulletproof."
One such stock, according to the analyst with Internet Wealth Builder, is Diageo PLC (NYSE: DEO). He says, ""London-based Diageo is the largest international manufacturer and distributor in the beverage alcohol industry, which is virtually recession-proof."
Many of its brands, he notes, will be immediately recognizable: Smirnoff, Guinness, Johnnie Walker, Captain Morgan, Jose Cuervo, Bushmills, J&B Scotch, and our own Crown Royal. In fact, he observes, 17 of the company's brands are among the top 100 premium spirit brands in the world.
Rogers explains, "Its strategy is to drive organic growth by taking leadership positions in every category in which it competes. The company also looks to exploit opportunities for growth in such key emerging markets as China, India, Russia, and Brazil."
He states, "All and all, this looks like a safe place to ride out any storm. However, the stock is not cheap. The ADRs trade just below its high. Buy with a target of $95."
Next up, he says, is Dentsply (NASDAQ: XRAY), whose origins go back to a family of London silversmiths in 1820. Today, he notes, it is the largest professional dental products supplier in the world.
Roger quips, "So if you drink too many Diageo products with sugar-filled mixers you can benefit from having your teeth looked after using this company's products."
The company, he points out, reported strong second-quarter results and has raised guidance for the rest of the year. Net sales rose 7.4%, to $507.4 million, driven by strong international growth. Net income for the quarter was $65.4 million, up 13.5% from last year.
The advisor concludes, "The business carries little debt and has a strong record of generating free cash flow so its modest dividend payout of 4 cents a share quarterly should increase going forward." He recommends purchase with a target of $50.
Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.
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