The combination of the US Federal Reserve tapering, the possibility of higher interest rates, and now the war in Ukraine have beaten-down stocks. There is no doubt it is a riskier and more volatile time to invest. The CBOE VIX is near 30, and the normal range is 18 to 19. However, it is still an opportunity for brave investors to add to existing positions or start new positions. Below, I discuss 3 beaten down stocks yielding at least 4%. All three stocks are Dividend Champions or Dividend Aristocrats with 25 or more years of annually increasing the dividend. In addition to the general downward trend for the stock market, each stock is facing its company-specific challenges. The stocks are International Business Machines (IBM), 3M Company (MMM), and Walgreens Boots Alliance (WBA). I view all three stocks as long-term buys.
3 Beaten Down Stocks Yielding 4%
International Business Machines
IBM is one of the largest IT services and software providers globally. However, the company struggled under its previous CEO due to poor operational execution, changing customer demands, and rising competition from the cloud. The result was declining revenue, increasing net debt, and a lower stock price.
3M Company is a large industrial conglomerate known for selling Post-Its, Scotch tape, ACE bandages, Command hooks, and Filtrete filters. However, the company also sells adhesives, tapes, granules, stationary, fibers, masks, and many more items for a total of about 60,000 products globally.
3M has faced significant headwinds over the past few years between the combination of tariffs, slow auto sales, and COVID-19…
The last stock we discuss is Walgreens Boots. The company is one of the largest drugstore chains in the US, with more than 8,965 stores under the Walgreens and Duane Reade brands and 4,031+ Boots and other store brands in the UK and other countries.
The company has struggled since the merger of Walgreens and Boots in 2015 due to poor operational execution and merger integration challenges…
Disclosure: Long IBM, MMM
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