Mondelez
This consumer sector giant makes good sense for conservative investors. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide. It offers biscuits, including cookies, crackers and salted snacks; chocolates, and gums and candies; powdered beverages and coffee; and cheese and other grocery products.
The primary Mondelez brand portfolio includes LU, Nabisco and Oreo biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolates; Trident gum; Jacobs Kaffee; and Tang powdered beverages.
Mondelez sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers and other facilities, as well as through independent sales offices and agents.
Shareholders receive a 2.09% dividend. Mondelez International stock has an $86 price target at Jefferies. The consensus target is $81.33, and shares closed on Friday at $74.27.
Merck
This remains a leading health care stock for conservative investors. Merck & Co. Inc. (NYSE: MRK) offers therapeutic and preventive agents to treat cardiovascular, type 2 diabetes, asthma, nasal allergy symptoms, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, intra-abdominal infections, hypertension, arthritis and pain, inflammatory, osteoporosis, male pattern hair loss and fertility diseases.
Merck also provides neuromuscular blocking agents for use in surgery, antibacterial products for skin and skin structure infections, cholesterol modifying medicines, non-sedating antihistamine and vaginal contraceptive products.
The dividend yield is 2.64% dividend. The $130 target price at Citigroup tops the consensus target of $124.21. On Friday, Merck stock closed at $112.52 a share.
Inflation has almost been cut in half over the past year as the Federal Reserve has raised interest rates from 0% to 5.15%, and there is a better than 50/50 chance that it may have one or even two more rate hikes before this cycle is over. While the recent rally has been solid, especially if you own AI stocks, the reality is the entire move higher in the major indexes has been the result of 10 stocks leading the way. That cannot last forever, and these inflation-fighting stocks likely will still be standing years from now.
Originally published at 24/7 Wall St.
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