As recession fears grow due to rising oil prices and geopolitical tensions, investors are increasingly shifting focus from high-risk stocks to more stable, recession-resistant companies. Two stocks that stand out as potential safe havens are CVS Health (CVS) and Bristol Myers Squibb (BMY), both of which are attractively valued and possess strong dividend programs.
CVS Health offers a diversified business model, encompassing pharmacies, insurance, and expanding primary care services, making it resilient during economic downturns. Its consistent dividend payouts, maintained through various market challenges, further enhance its appeal, especially as it trades at a forward earnings multiple of 10.3x, well below the healthcare sector average. Similarly, Bristol Myers Squibb, trading at 9.5x forward earnings, has a robust portfolio of medicines and a promising new subcutaneous formulation of its oncology drug Opdivo, which should support growth despite upcoming patent expirations.
For market professionals, these stocks present a compelling opportunity to bolster portfolios with reliable income and stability amid uncertain economic conditions.
Source: fool.com