The recent news of Netflix losing subscribers has sparked reactions on the market streets. Some wonder how it will keep making revenue since it is likely to lose more subscribers in the coming months, others ask how it ever became FAANG in the first place? Some others wonder if this stock will rise again since it has fallen no less than 35% since its announcement.
Like Netflix, all the FAANG stocks (with the exception of Apple), as well as high growth tech companies, are getting a radical re-evaluation. Amazon is down 15.83% between January and April, Facebook is down 46.08% and Alphabet is down 17.14% in that time frame.
Stocks like Virgin Galactic, Atlassian, DocuSign, Zoom and Etsy are all down 39.44%, 29.67%, 45.23%, 47.14%, 52.69% respectively since January. It seems like the darlings of Wall Street have now become strangers on these streets.
The inflationary environment has made Wall Street tired of companies promising tons of future growth. They want the revenue now. So they have replaced big tech with traditionally boring companies that reward their shareholders with boatloads of dividends.
Here are some examples to add to your portfolio.
- United Health: The multinational health and insurance company may also be undervalued which is a good pick for value investors. Its financial health and growth prospects show its potential to outperform the market.
- Morgan Stanley: Global financial service leader saw a stronger-than-expected revenue in Q1 2022. Its shares have also risen 3.71% since its earnings call. This New-York based bank also pays dividends every quarter.
- Johnson and Johnson: This blue-chip company just announced earnings that were slightly ahead of Wall Street predictions and its investors are currently enjoying a 6% rise in dividends, wouldn’t you like to join this gang?
- Procter & Gamble: This is a preferred stock by investors for rocky times. The consumer goods giant produces products from skincare, healthcare to hygiene products, which makes it a constant brand in everyday living regardless of the economic situation. P&G is expected to deliver $20billion to investors as dividends. With its industry-leading position and high cash return, you will be happy owning this stock over a long term.
- PepsiCo: With its wide range of food and beverage products it produces, it will be sad if PepsiCo does not give dividends. The giant is known to consecutively pay quarterly cash dividends since 1965 and 2022 will make it its 50th annual dividend increase.
- Coca-cola: This multinational beverage company beat Wall Street’s estimates as its revenue jumps 16% in Q1 2022. Despite the suspension of its Russian business, the company has repeatedly shown its growth ability and its investors are not left out in dividends.