If any investor has stood the test of time, it is Warren Buffett. 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, he remains one of the preeminent investors in the world.
The chatter across Wall Street from economists, equity strategists and, of course, the financial news teleprompter readers is that when it comes to a recession, it’s not a matter of if anymore, it is a matter of when. The definition of a recession is two consecutive quarters of negative gross domestic product. First-quarter GDP decreased at an annual rate of 1.4%. Should that happen in the second quarter, that would place the economy in recession now.
We decided to screen Warren Buffett’s Berkshire Hathaway portfolio looking for dividend-paying stocks that are Buy rated across Wall Street and would hold up well in a recession. We found seven companies that look like solid ideas for worried investors looking to stay in equities but who want to be in companies that can weather the coming recession and stagflation storm.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Bank of America
This company posted very solid first-quarter results and Warren Buffett owns a stunning 1.1 billion shares. Bank of America Corp. (NYSE: BAC) is a ubiquitous presence in the United States, providing various banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, corporations and governments in the United States and internationally. It operates 5,100 banking centers, 16,300 ATMs, call centers and online and mobile banking platforms.
Bank of America has expanded into several new U.S. markets, with scale across the country positioning it ideally to benefit from accelerating loan growth over the next two years. Moreover, unlike smaller peers, scale allows the bank to increase investment substantially over the next few years without notably jeopardizing returns, driving further market share gains.
Shareholders receive a 2.34% dividend. Goldman Sachs has a $47 target price on Bank of America stock. The consensus target is $48.28, and the shares closed on Tuesday at $35.65.
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