Wall Street is all about statistics. One of the grim ones is the fact that the past 10 trading days of September are typically the worst of the year. In addition, some of the worst market crashes in U.S. history have occurred in the month of October. One of the biggest was on October 29 of 1929, when on Black Tuesday the Dow Jones industrial average completed a multiday sell-off that lost nearly 25% of its value, helping to usher in the Great Depression.
In 1987, on Black Monday October 19, an even more sudden collapse hit the stock market when computerized trading played one of its first major roles in destroying stocks. The Dow fell by about 22%, the largest ever percentage drop in a single day. Now with everything from a hot war in Ukraine to soaring energy prices and interest rates, a very divided country along political lines, huge government debt, a very aggressive China, and the potential for a government shutdown looming, we could be in serious trouble.
For those seeking shelter from the coming storm, short Treasury paper makes a ton of sense. It can be bought directly from many banks and brokerage firms or, of course, a broker can assist in buying. The six-month T-bill is priced to yield 5.55%, while the one-year bill yields 5.46%.
For those looking for safe stocks, we screened the Berkshire Hathaway portfolio looking for the safest names that pay among the largest dividends. The following seven stocks hit our screens. While Warren Buffett loves them, along with top Wall Street analysts, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Chevron
This integrated giant is a safer way for investors looking to get positioned in the energy sector, and shares have backed up some. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide. The company operates in the following two segments.
The Upstream segment is involved in the 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 and 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 of renewable fuels; transporting crude oil and refined products by pipeline, marine vessel, motor equipment and rail car; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives. It is also involved in cash management and debt financing activities; insurance operations; real estate activities; and technology businesses.
Chevron posted strong second-quarter results and has a solid place in the sector when it comes to natural gas and liquefied natural gas (LNG). It remains one of the best ways to play energy safely.
The company sports a 3.63% dividend. UBS has a $209 target price on Chevron stock, while the consensus target is just $175.63. The shares closed on Monday at $168.71.
Coca-Cola
This stock not only offers safety but comes with an incredibly strong worldwide brand with 40% overseas sales. Coca-Cola Co. (NYSE: KO) is the world’s largest beverage company, refreshing consumers with more than 500 sparkling and still brands. It remains a top Buffet holding, as he owns a massive 400 million shares.
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