The Death Cross Is Now in Place: Our 5% Dividend Stock Safety Net Portfolio Rules

Hedge funds are rapidly reducing their exposure to global information technology stocks, with the latest sell-off marking the fastest decline in six months. Most sales are reported to be in semiconductors and semiconductor capital equipment. Online data indicate that major hedge funds have reduced their exposure to the information technology segment to 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. To top it all off, the death cross is currently in place on not only the S&P 500 but also the Nasdaq.

The death cross is a technical analysis anomaly that typically occurs when equity markets or major indices are in imminent danger. A death cross in stocks is a technical chart pattern where a stock’s or index’s short-term moving average crosses below its long-term moving average. This is often interpreted as a bearish signal and could suggest a potential sell-off or downtrend. To be more specific, it typically refers to the 50-day moving average crossing below the 200-day moving average.

As we noted recently, when stocks bounced after one of the most volatile supersonic sell-offs in recent history, what happens almost every time, did. The snapback rally typically emerged as hedge fund and algorithmic traders covered short positions, so this was hardly a slew of new, excited long-term investors. While stocks have reset lower, there could be more downside before we see a real volume-led turnaround.

Five 24/7 Wall St. safety net dividend portfolio stocks are the perfect place to be now. They all pay at least a 5% dividend and have consistently raised their dividend payments over many decades. Lastly, these companies 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 safe 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) is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. This remains a solid pharmaceutical stock to own long-term, and it offersan outstanding entry point.

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 a Buy rating on the shares with a $65 target.

Chevron

Chevron Corp. (NYSE: CVX) manufactures and sells fuels, lubricants, additives, and petrochemicals. This integrated giant is a safer option for investors looking to position themselves in the energy sector. The company operates in two segments.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron announced in the fall of 2023 that it has entered into a definitive agreement with Hess Corp. (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. It should finally close this summer.

UBS has a Buy rating with a $185 price objective.

Conagra Brands

This American consumer packaged goods holding company offers a safe investment with stellar, dependable dividends. Conagra Brands Inc. (NYSE: CAG) operates primarily in the United States through four segments:

• The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.
• The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
• The International segment offers food products in various temperature states through retail and food service channels outside the United States.
• The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.

The company sells its products under these well-known brands:

• Birds Eye
• Marie Callender’s
• Duncan Hines
• Healthy Choice
• Slim Jim
• Reddi-Wip
• Angie’s
• BOOMCHICKAPOP

Barclays has an Overweight rating for the shares with a $32 target price.

Dominion Energy

This American energy company is headquartered in Richmond, Virginia. 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) 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 $54 target.

Verizon

Verizon Communications Inc. (NYSE: VZ), commonly known as Verizon, is an American multinational telecommunications conglomerate that still offers tremendous value. Its stock trades at 8.75 times the estimated 2025 earnings. The company provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

Its Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic, including the District of Columbia, and the northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

 Goldman Sachs has a Buy rating and a price target of $52.

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