Two months ago, the Coronavirus Pandemic had slashed 80% of the stock market gains made since President Trump took office. Today, the market is showing signs of recovery, but there’s still volatility linked to economic uncertainty and rising trade tensions with China.
These three market picks can offer some protection from the current conditions.
Middlesex Water Company (NASDAQ: MSEX)
Wastewater and water utility services are seeing stable demand during the Coronavirus Pandemic. Middlesex Water Company provides these services in New Jersey and is one of the oldest companies of its kind. The company has a stable revenue stream and a high gross profit margin of 37.07%. Earnings growth will be positive but mild in 2020. Analysts expect a growth rate of 2.5% this year.
The stock is a strong long-term pick with a 1.61% dividend yield that can create income for reinvestment or retirement.
The Clorox Company (NYSE: CLX)
As a producer of home and commercial cleaning products, the Clorox Company has seen high demand during the Coronavirus Pandemic. Handwashing and surface cleaning offers frontline defense against viruses and bacteria.
Clorox is one of the most recognizable brand names in cleaning. Unlike many companies that are seeing reduced earnings from the Coronavirus, Clorox earnings are expected to grow by 9% in 2020. The stock could see a significant upside in the coming months. It also comes with a dividend yield of 2.24% at today’s price.
Invesco Dynamic Biotechnology & Genome ETF (NYSE: PBE)
Although not a stock, this exchange-traded fund works just like one. Investors can add it to their portfolios and gain returns from price growth and the 0.05% dividend yield.
This pick is interesting because it leverages the biotechnology market, where gains are being made in Coronavirus treatments and potential vaccines. Even outside of the current pandemic, biotechnology is an exciting area of growth with innovative companies developing everything from cancer treatments to novel respiratory therapeutics.
This fund is comprised of 30 of the most promising biotechnology dividend stocks traded today.
Dividend Stocks for Growth Performance This Year
Although the markets aren’t as strong as they were in 2019, there are still winning stock picks to be found. Investors should look for high potential growth and secure returns. Dividends can help to support a portfolio. Companies that are protected from the economic downturn are likely to be the best options for investors over the coming months.
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