In times of market turbulence, smart investors often turn to stocks that not only provide stable dividend payments but also exhibit resilience in their stock performance. Defensive sectors can shine in these bearish phases, offering not just safety but also a steady income stream. Here’s a closer look at three such stocks, each standing out with their solid dividends and promising technical setups.
AT&T (T): A Telecom Titan on the Rise
AT&T has bucked the downtrend that has ensnared tech giants like Alphabet and Meta Platforms this month. The stock achieved a key technical breakout in late June, surpassing the February high of $18.20. This upward movement was supported by a rebound from the 50-day moving average, underscoring a robust pattern of higher highs and higher lows. Currently offering a dividend yield of about 5.7%, AT&T not only promises capital appreciation but also handsomely rewards its shareholders with one of the higher dividend yields in the sector.
British American Tobacco PLC (BTI): Gearing Up for Growth
While U.S. counterparts like Altria and Philip Morris have seen their prices surge this year, British American Tobacco appears just at the cusp of its growth phase. The stock, with a hefty dividend yield of over 8%, offers a significant income advantage. After languishing below a downward-sloping 200-day moving average throughout 2023, BTI showed signs of a turnaround this April, marking a potential double bottom pattern. Since then, it has charted a steady course of higher highs and higher lows, recently breaching key moving averages to signal a promising uptrend.
Eversource Energy (ES): A Utility Uptrend
In the utilities sector, known for its low volatility and high dividend yields, Eversource Energy stands out, especially with recent sector improvements. Similar to BTI, ES spent 2023 underperforming but established a firm double bottom pattern early in 2024, finding strong support around $52. After a quiet mid-year, the stock has broken to new three-month highs post-July, underpinned by a dividend yield of approximately 4.5%. This performance suggests that Eversource may be entering a new phase of growth, making it an attractive pick for those seeking both safety and income.
Navigating Market Uncertainties with Confidence
When broader market indices like the S&P 500 and Nasdaq show signs of weakness, turning to defensive stocks with strong dividends and stable technical charts can safeguard investments while providing essential income. AT&T, British American Tobacco, and Eversource Energy each offer a combination of reliability and potential growth that can serve investors well during uncertain times. Whether the market zigs or zags, these stocks are positioned to provide a buffer against volatility and a pathway to consistent returns.
