After a dreadful 2022, many stock investors will be looking at their year-end statements and trying to make some decisions on where to reallocate assets in 2023. With fourth-quarter earnings reports right around the corner, and the potential for some disappointing results and forward guidance, it makes sense to look at companies that have stood the test of time and can hold their own in what could be a very challenging environment, at least for the first half of the new year.
One group of stocks that may fit the bill nicely is those in the Dow Jones industrial average, one of the oldest and most commonly followed equity indexes. Legacy companies in a variety of sectors that pay dependable and big dividends are likely among the best ideas to outperform in 2023. We screened the index looking for the highest-yielding companies in sectors that look to benefit from solid demand and can do well even if a severe recession is on tap for 2023.
We only selected stocks that are rated Buy, as two of the highest-yielding companies do not have a single analyst with a Buy rating. If nobody likes a stock, it likely has trouble below the surface. It is important to remember though that no single analyst report should be used as a sole basis for any buying or selling decision.
Stocks are listed in order of the highest yield.
Verizon
This top telecommunications stock offers tremendous value at current levels, and Berkshire Hathaway owns a stunning 158.8 million shares. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.
The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Its wireline business has undergone a period of secular decline due to wireless substitution and cable competition.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Verizon stock investors receive a 6.80% dividend. Cowen’s $55 target price on the shares is well above the $35.25 consensus target. The stock closed over 2% higher on Tuesday at $39.25 a share.
Intel
This legacy leader in semiconductors has been hammered, and while some feel it is a value trap, it is hard to count out the company that defined the semiconductor revolution. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide.
The platforms are used in various computing applications, comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.
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