Investments To Buy: Current Opportunities

With the Federal Reserve making moves to curb high inflation rates, it can be challenging to determine which stocks to invest in. However, there are still promising opportunities to seize.

For instance, large companies with a massive economic moat and non-cyclical plays that offer strong dividends are good bets in a downturn. These include Amazon, Alphabet (Google's parent company), Meta Platforms (formerly Facebook), and Microsoft.

If you're looking for cyclical gems, Tesla and NVIDIA are worth considering, though they come with more risk.

For value investors, H&R Block and Duke Energy are stable bets, while growth investors might want to consider Airbnb and CrowdStrike.

Ultimately, the best stocks to buy depend on your personal financial situation, risk tolerance, and investment goals. It's important to do your research and make educated decisions.

Tech stocks

• Nvidia (NVDA)
• Meta Platforms, Inc. (META)
• Microsoft Corporation (MSFT)
• Arista Networks (ANET)
• Taiwan Semi (TSM)
• CrowdStrike (CRWD)
• ServiceNow (NOW)
• Monday.com (MNDY)
• Alphabet Inc. (GOOGL)
• Amazon.com, Inc. (AMZN)
• H&R Block Inc (HRB)
• ASML Holding NV (ASML)
• Tesla (TSLA)
• Apple (AAPL)
• Duke Energy Corp (DUK)

Dividend stocks

• Pennymac Mortgage Investment Trust (PMT)
• Franklin BSP Realty Trust Inc. (FBRT)
• International Seaways Inc (INSW)
• Angel Oak Mortgage REIT Inc (AOMR)
• Civitas Resources Inc (CIVI)
• CVR Energy Inc (CVI)
• Evolution Petroleum Corporation (EPM)
• Altria Group Inc. (MO)
• Insteel Industries, Inc. (IIIN)
• Washington Trust Bancorp, Inc. (WASH)
• Chord Energy Corp (CHRD)
• First Of Long Island Corp. (FLIC)
• Alexander's Inc. (ALX)
• Eagle Bancorp Inc (MD) (EGBN)
• Artisan Partners Asset Management Inc (APAM)
• Verizon Communications Inc (VZ)
• Johnson & Johnson (JNJ)
• PNC Financial Services (PNC)
• Comcast Corp Class A (CMCSA)
• Exxon Mobil (XOM)
• Medtronic (MDT)
• Duke Energy Corp (DUK)
• Kinder Morgan (KMI)
• Devon Energy (DVN)
• Dow (DOW)
• STAG Industrial (STAG)
• EPR Properties (EPR)
• Realty Income (O)
• AGNC Investment Corp (AGNC)
• Gladstone Commercial (GOOD)
• LTC Properties (LTC)
• Dynex Capital (DX)
• Main Street Capital (MAIN)
• Prospect Capital (PSEC)

When choosing dividend stocks, it's important to look beyond the yield and consider the dividend's durability and reliability. A very high dividend yield can indicate that a payout is unsustainable or that the stock price is low. It's also crucial to evaluate the company's fundamentals, payout ratio, and whether the dividend is safe.

Growth stocks

• Amazon.com, Inc. (NASDAQ: AMZN): A cyclical stock that has weathered economic storms before, including the COVID-19 pandemic, and is likely to bounce back again.
• Alphabet Inc (NASDAQ: GOOGL): A diverse and innovative company with a dominant presence across different tech sectors, including artificial intelligence and autonomous vehicles.
• Meta Platforms Inc (NASDAQ: META): A favourite on Wall Street, Meta has solid revenue growth and impressive earnings-per-share growth. It's currently trading at a discount.
• H&R Block Inc (NYSE: HRB): A well-known company with strong brand recognition, H&R Block is a good value stock as people will always need to pay their taxes, even in a recession.
• ASML Holding NV (NASDAQ: ASML): This company enjoys a monopoly on the extreme ultraviolet lithography machines needed to make microchips. Analysts are forecasting significant growth in earnings through 2023 and 2024.
• Tesla (NASDAQ: TSLA): A visionary company focused on sustainable energy resources, electric vehicles, renewable energy, and cutting-edge technology. Tesla has experienced explosive growth over the last five years.
• Apple (NASDAQ: AAPL): A tech behemoth with a long track record of innovation, stability, and steady stock growth. Apple also offers a small dividend yield, demonstrating a commitment to shareholders.
• Duke Energy Corp (NYSE: DUK): One of the largest electric utility providers in the United States, serving over 7.7 million customers across six states. Duke Energy has a history of outperforming the S&P during economic hardships and is a stable, low-volatility investment.
• Microsoft Corp (NASDAQ: MSFT): A tech giant that has proven its ability to weather market storms, including the dot-com bubble and the 2008 recession. Microsoft continues to stand tall and adapt to changing market conditions.
• NVIDIA (NASDAQ: NVDA): A powerhouse in semiconductor technology with a long track record of innovation, including 3D graphics, GPUs, and AI. NVIDIA offers a small dividend yield and is a good choice for investors seeking growth and innovation.

Value stocks

• AT&T (NYSE: T) – This company has a "Strong Buy" analyst rating and offers a dividend yield of 5.94%.
• Micron (NASDAQ: MU) – With a "Strong Buy" rating and a forward P/E of 131.60, Micron is expected to see full capacity through 2025.
• AbbVie (NYSE: ABBV) – AbbVie has a "Strong Buy" rating and has been outspending rivals to promote its drugs. It currently has a dividend yield of 3.70%.
• Intel (NASDAQ: INTC) – Although Intel does not pay dividends, it has a "Strong Buy" analyst rating and its stock is currently trading below its average 12-month price target.
• Cisco Systems (NASDAQ: CSCO) – Cisco Systems does not pay dividends but has a "Strong Buy" rating and is expected to grow earnings by at least 8% per year over the next five years.
• Ford Motor (NYSE: F) – Ford Motor does not pay dividends but has a "Strong Buy" analyst rating. It is expected to grow earnings by at least 8% per year over the next five years.
• General Motors (NYSE: GM) – General Motors does not pay dividends but is expected to grow earnings by at least 8% per year over the next five years. It has a "Strong Buy" analyst rating.
• International Business Machines (NYSE: IBM) – International Business Machines does not pay dividends but has a "Strong Buy" rating and is expected to grow earnings by at least 8% per year over the next five years.
• Pfizer (NYSE: PFE) – Pfizer currently pays a dividend yield of 5.99% and has a "Strong Buy" analyst rating.

These value stocks offer a mix of dividend-paying and non-dividend-paying companies, but all are expected to perform well in the current market conditions.

Energy stocks

Targa Resources (TRGP)

Targa Resources is one of the best-performing energy stocks as of July 2024. The company is involved in the gathering, processing, and distribution of natural gas and natural gas liquids.

Diamondback Energy (FANG)

Diamondback Energy is another top energy stock as of July 2024. The company is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional oil and natural gas properties in the Permian Basin.

The Williams Companies (WMB)

The Williams Companies is a large natural gas infrastructure company that owns and operates pipelines and processing facilities across the United States. It has been a strong performer in the energy sector.

Marathon Petroleum (MPC)

Marathon Petroleum is a large US-based oil and gas refining, marketing, and transportation company. It has a diverse range of assets and operations, including refineries, pipelines, and retail outlets.

Exxon Mobil Corp (XOM)

By market capitalization, ExxonMobil is the largest non-government-owned energy company in the world. The company was created through the merger of Exxon and Mobil, and its core business is the exploration, production, and trade of crude oil and natural gas, as well as the manufacturing of petroleum products.

Chevron (CVX)

Chevron is the second-largest energy company in the United States and the third-largest in the world. It is a major producer of oil and gas and supplies aviation fuel. The company also owns a large network of retail gas stations.

PetroChina Co Ltd (PTR)

PetroChina is the largest producer and distributor of oil and gas in China and Asia. It was the first Chinese stock that Warren Buffett bought for Berkshire Hathaway due to its large reserves, financial strength, and potential within the growing Chinese economy.

TotalEnergies SE (TTE)

TotalEnergies is the largest energy company in France, focusing on the exploration, drilling, and refining of oil and natural gas. The company has announced a shift towards cleaner energy sources, with a significant portion of its investment budget allocated to natural gas and renewable energy.

ConocoPhillips (COP)

ConocoPhillips is an American energy company based in Houston, Texas. It is the largest independent oil and gas exploration and production company in the world, discovering new reserves and developing technologies to extract more energy from existing reserves.

Enbridge (ENB)

Enbridge is a midstream energy company that transports oil and other hydrocarbons across the US and Canada. The company owns and operates a large network of pipelines, including regional oil sands and natural gas pipelines, as well as onshore and offshore wind projects.

Canadian Natural Resources Limited (CNQ)

Canadian Natural Resources Limited has operations primarily in Canada, the North Sea, and Africa. The company offers a range of crude oils and natural gas and has ownership in midstream pipeline assets.

Frequently asked questions