With stock market volatility on the rise and likely to persist, investors should think more defensively. That means looking for great companies to buy on big down days for the market. It can also mean taking a more income-oriented approach. That can include companies with low to moderate dividend yields with a history of increasing that payout over time, or companies with a high current yield. Either could help boost investor returns in today’s jittery markets. Plus, dividend stocks should perform well should interest rates move lower, as dividend yields will look more attractive com...

The tariff whipsaw in markets may be past the worst of the pain, but it’s not over yet. However, there’s a clear sign that many companies will be increasing their domestic manufacturing to avoid the dangers of rapid change in tariff policies. That could bode well for many American manufacturers, particularly those who produce higher-end technologies. And owning shares of these companies could lead to outperformance as they see higher growth. That includes industrial giant Honeywell (HON). The industrial conglomerate has a variety of products, and its industrial automation tools can h...

Investors have had a rocky year. Stocks touched bear market territory within just a few weeks of hitting all-time highs back in February. While many names have been hit hard, a few sectors have been standouts in this market carnage. One big performer here is the healthcare sector. These companies were generally laggards during the market’s big run over the past two years. Today, that’s reversing. Health insurers also received notice that Medicare payment rates would increase. That’s providing a tailwind that could help these companies continue to outperform the overall market. Amo...

As the Trump administration looks to find ways to cut back America’s $2+ trillion national debt, investors are eyeing companies with large government contracts. Staffing companies have already fallen on the logic that temporary workers for government agencies are out. But now the trend is widening. It’s also hitting defense contractors, as cutting defense spending could be a key way to bridge the budget gap. However, investors may have an opportunity in today’s markets. That’s because data-related spending is likely to continue in today’s digital age. Spending on other government pro...

Nearly every market sector has been hit hard in the past week amid rising global tariffs and retaliatory measures. However, all sectors are different, and some of today’s selloff could be overdone. Even if the tariff situation gets worse before it gets better, some companies could actually benefit from the rising fears right now. That includes wealth management companies, who have no product that could be impacted by tariffs, and whose services are needed as much as eve For instance, The Charles Schwab Corporation (SCHW) slid 8% last Friday alone. Year-to-date, shares have now given ...

Investors are scrambling to buy companies that can profit no matter what happens in the global economy next. For U.S. investors, companies that manufacture their products domestically are stronger plays than those that produce overseas. These safe-haven plays are seeing some traction as global tariff rates rise substantially. They may continue to hold up in the months ahead. But an even better play may be service-oriented companies away from manufacturing entirely. Take, for instance, pharmaceutical distributor McKesson (MCK). The transporter of specialty drugs has been growing faste...

Many sectors are cyclical, moving in and out of favor depending on market conditions and consumer demands. One of the more interesting cyclical sectors is the video game sector. Earnings for video games can roll in as a big new game is released. Most developers try to build franchises that can sustain regular releases to create big revenue. But there’s another wave that can benefit as well. That’s the console wave. Every few years, the latest generation of consoles come out. And it usually means a boom for the companies that manufacture them. The next console coming out is the Switch...

Investors have a love/hate relationship with turnaround stocks. When a company falls on hard times and can turn things around, investors who bought while things are dark can make considerable returns. But if the company fails to turn around, further losses mount. A company that’s looking to turn around needs to be honest about their prospects, first and foremost. It’s easy to say things will turn around, whether they will or not. Currently, chipmaker Intel (INTC) has an uphill battle, with the new CEO acknowledging that it won’t be easy. Intel has gone from being the industry leader ...

Investors have started to shift out of some consumer stocks recently, noting that a slowing economy could bode poorly for some subsectors such as travel. For now, this shift lower is being felt to a lesser extent in other parts of the economy. Some fast food CEOs have warned that the price hikes of the past few years is leading to fewer visits from customers. However, that hasn’t been the case across the board. For instance, Darden Restaurants (DRI), owner of such chains as the Olive Garden and Ruth’s Chris Steak House, has been hitting new highs. Darden shares are now up over 20%...

Tariff fears have gripped the economy in recent weeks. Slight increases in tariffs between several nations, coming off of decade-low levels, make for scary headlines. And higher tariff rates will mean a shift in economic fortunes. Fortunately, it’s not the end of the world. With this selloff, many companies that may appear to be in the crossfire of changing tariff rates may be setting up for a strong buy now. For instance, Taiwan Semiconductor (TSM) is a foreign firm that’s responsible for the physical manufacturing of most chips designed by American chipmaker firms. Shares have s...