What an outstanding year it has been, after a dreadful 2022 that most stock investors are more than happy to see fade into the distance. With the S&P 500 up over 18% and the Nasdaq a stunning 34% higher after just seven months of trading, many would be thrilled if the year ended now. However, the economic past looks like it is catching up to the present day, and that could mean big trouble.
It is possible that the interest rate hikes are over. Yet, it is highly unlikely, given the strength in the economy and the fact that inflation could roar back at any moment, especially with oil prices up big over the past five weeks. While the artificial intelligence revolution that ignited the tech rally is here to stay, the initial excitement is cooling and some are taking big profits, and it may be time to move those profits to safer stocks.
If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years the “Oracle of Omaha” has had a rock-star-like presence in the investing world. His annual Berkshire Hathaway shareholders meeting draws literally thousands of loyal fans who are investors. Known for his long buy-and-hold strategies and his massive portfolio of public and private holdings, Buffett remains one of the preeminent investors in the world.
We decided to take a look into the Berkshire Hathaway portfolio for companies that not only look poised to do very well this year but pay dependable dividends. We found seven that are ideal stocks for investors to consider now, especially in what could become a very volatile and nervous market. All are also rated Buy by top firms on Wall Street, but 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 nicely. Chevron Corp. (NYSE: CVX) engages in integrated energy and chemicals operations worldwide. The company sports a sizable dividend and has a solid place in natural gas and liquefied natural gas (LNG).
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 LNG; transportation of crude oil through pipelines; and transportation, storage and marketing of natural gas, as well as operates 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 the cash management and debt financing activities; insurance operations; real estate activities; and technology businesses.
Chevron stock comes with a 3.72% dividend. Goldman Sachs has a $182 target price, while the consensus target is $168.48. The shares closed on Thursday at $159.67.
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