These Ballot-Proof Stocks Should Perform Well, No Matter Who Wins the Election
On November 3rd, Americans will go to the polls to decide who their next set of leaders will be. The last four years have made the stakes for these elections particularly high and because the markets hate uncertainty, this year’s elections may make some investors very nervous. If you are one of those nervous investors looking for “election-proof” stocks, this article is for you.
Here are some stocks that are likely to take zero to minimal hits regardless of whatever way the results swing.
Procter & Gamble(NYSE: PG) is as steady a stock as they come and the proof is in the dividends. The Dividend King has raised its dividend for 64 consecutive years, providing shareholders with a 2.2% yield. The consumer goods giant was founded about 180 years ago and has seen many important elections while remaining growing its revenue and profits throughout different administrations. Suffice it to say, whether Biden or Trump win the election, people will still buy disinfectants, detergents and air fresheners.
Caterpillar(NYSE: CAT) is another stable company. Come a democratic or republican victory on November 3rd, Trump and Biden will spend heavily on infrastructure in the next 4 years. For Caterpillar and her earth-moving equipment, the money that will be channelled towards America’s infrastructure development is very good news.
Since it’s spat with regulators in the 90s and early 2000s, Microsoft (NASDAQ: MSFT) has managed to stay in the good books of regulators, avoiding government ire. Microsoft on November 28th announced that profits in the recently ended quarter continued to soar despite the pandemic, rising to $13.9 billion.
NextEra Energy (NYSE: NEE) is the world’s largest generator of solar and wind power and has a growing battery storage segment and whether Trump or Biden becomes the occupant of the oval office, the trend towards renewable energy will not change. Granted, a Trump presidency may slow down the trend but NextEra’s current backlog of executable renewable energy contracts is larger than its existing renewables portfolio. The future is very bright.
The industrial giant 3M (NYSE: MMM) has products ranging from aircraft parts to parts for rails, cars, buses and even post-it notes. 3M is also the company behind the N95 masks and has sold 1.4 billion masks in 2020 alone due to covid. With this level of variety in its product class, it’s difficult to see how a potential change in administration come November 3rd, will affect 3M negatively. The stock is also trading rather cheaply, at 19 times next year’s estimated earnings, compared with the average of 25 for the S&P 500.
The massive retailer, Alibaba (NYSE: BABA) has an Amazon-like grip on the 1.3 billion people that live in China and that can insulate it from whatever drama stirs up between the U.S. and China in the next 4 years. Alibaba also owns about 33% of Ant Group, the fintech company that is set to have the largest IPO in history.
Leidos (NYSE: LDOS) is an American Defense, Aviation, Information Technology, and Biomedical Research company. Leidos’ is responsible for keeping government workers connected in a work-from-home economy. Before the pandemic, Leidos won a contract to maintain the computer networks for the U.S. Navy and these will remain valid post-election. The stock is up 4% year to date after previously dropping 10% in February.
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Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?