10 High-Yield Stocks That Protect Against A Declining Dollar

|
 |  Includes: ABT, COP, CVX, GE, INTC, JNJ, MDLZ, MRK, PFE, PG
by: Insider Monkey

Investors are able to protect themselves from the decline in US dollar by investing in US companies that have a significant amount of their business in foreign markets and receive a large chunk of their revenues overseas. They can also invest in oil companies as they are exposed to oil prices which will increase in case of runaway inflation. Additionally, defensive investors tend to purchase stocks with high dividend yields to achieve sustainable returns. Considering the fact that the recent disinflation period will not last forever, we recommend investors play more defensively by picking high dividend stocks that have global exposure or oil market exposure.

Below we compiled a list of 10 dividend stocks that are protected against the decline in US dollar. All companies are large cap and have a dividend yield of at least 3%. They are either oil companies or US companies with large international exposure.

Company Name

Ticker

Dividend Yield (%)

Return since June

The Procter & Gamble Company

(NYSE:PG)

3.39%

-1.76%

Abbott Laboratories

(NYSE:ABT)

3.80%

-3.01%

Johnson & Johnson

(NYSE:JNJ)

3.58%

-3.52%

Intel Corporation

(NASDAQ:INTC)

4.05%

-5.42%

Chevron Corporation

(NYSE:CVX)

3.25%

-5.97%

Merck & Co., Inc.

(NYSE:MRK)

4.79%

-8.98%

Pfizer Inc.

(NYSE:PFE)

4.36%

-10.01%

ConocoPhillips

(NYSE:COP)

4.08%

-13.11%

Kraft Foods Inc

(KFT)

3.39%

-2.84%

General Electric Company

(NYSE:GE)

3.89%

-18.29%

Click to enlarge

These 10 stocks have an average return of -7.29% vs. -10.78% for SPY since the end of June. Two of the companies – CVX and COP – are oil companies, while the other eight are global US companies.

Procter & Gamble (PG): provides consumer packaged goods in more than 180 countries through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores, the neighborhood stores, etc. PG has a dividend yield of 3.39% and lost 1.76% since the end of June. It has a market cap of $172.19B and a P/E ratio of 15.95. Warren Buffett holds the largest position in PG (check out Buffett’s top stock picks).

Abbott Laboratories (ABT) is engaged in discovery, development, manufacture, and sale of diversified line of healthcare products. ABT has a dividend yield of 3.80% and lost 3.01% since the end of June. It has a market cap of $79.06B and a P/E ratio of 15.47. Ken Fisher holds the largest position in ABT.

Johnson & Johnson (JNJ) is engaged in the research and development, manufacture and sale of products in the health care field. It has more than 250 operating companies conducting business worldwide. JNJ has a dividend yield of 3.58% and lost 3.52% since the end of June. It has a market cap of $174.51B and a P/E ratio of 15.25. Warren Buffett holds the largest position in JNJ.

Intel Corporation (INTC) designs and builds the essential technologies that serve as the foundation for the world's computing devices. INTC has a dividend yield of 4.05% and lost 5.42% since the end of June. It has a market cap of $111.11B and a P/E ratio of 9.69. Paul Ruddock and Steve Heinz’s Lansdowne hold the largest positions in INTC.

Chevron Corporation (CVX) is an American multinational energy corporation headquartered in San Ramon, California, and active in more than 180 countries. CVX has a dividend yield of 3.25% and lost 5.97% since the end of June. It has a market cap of $195.31B and a P/E ratio of 8.51. Phill Gross and Robert Atchinson hold the largest positions in CVX.

Merck & Co., Inc (MRK) is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. MRK has a dividend yield of 4.79% and lost 8.98% since the end of June. It has a market cap of $98.92B and a P/E ratio of 23.26. Ric Dillon holds the largest position in MRK.

Pfizer Inc (PFE) is an American multinational research-based pharmaceutical corporation. PFE has a dividend yield of 4.36% and lost 10.01% since the end of June. It has a market cap of $143.40B and a P/E ratio of 17.21. David Einhorn holds the largest position in PFE (see Einhorn’s top stock picks here).

ConocoPhillips (COP) is an American multinational energy corporation. It is the third-largest integrated energy company in the U.S. and the fifth-largest refiner in the world. COP has a dividend yield of 4.08% and lost 13.11% since the end of June. It has a market cap of $92.98B and a P/E ratio of 8.31. Warren Buffett holds the largest position in COP.

Kraft Foods Inc (KFT) manufactures and markets packaged food products in approximately 170 countries. KFT has a dividend yield of 3.39% and lost 2.84% since the end of June. It has a market cap of $60.84B and a P/E ratio of 19.77. Warren Buffett holds the largest position in KFT.

General Electric Company (GE) is a diversified technology and financial services corporation that serves customers in more than 100 countries. GE has a dividend yield of 3.89% and lost 18.29% since the end of June. It has a market cap of $166.53B and a P/E ratio of 12.21. Ken Fisher holds the largest position in GE (check out Fisher’s top stock picks).

Disclosure: I am long COP.