E 3 Stocks To Buy In Case Of A Market Crash In 2021

Costco Wholesale Corporation (COST):

Costco is a company that has stood the test of time. It is an all-weather stock and Costco members fawn over the company. The retailer has grown the number of paid memberships from 47.6 million to 58.1 million over the last five years, with a 90% renewal rate across all markets it operates in. It’s no surprise that the company announced double-digit growth for the five weeks ended January 3, 2021.  

Costco reported sales of $19.14 billion for December 2020, an increase of 12.3 percent from $17.04 billion last year. And this was a slow month thanks to people staying indoors and having smaller family gatherings for the holidays.

Costco’s dividend payout is not huge with a forward yield of just 0.76% but the company does like to surprise its investors. In December, it announced a $10 special cash dividend. How’s that for a Happy New Year!

And Costco hasn’t let the pandemic let it get lazy. It leaned into its e-commerce business and increased revenues by 62.5% in December 2020 compared to December 2019 and by 75.2% for a year-on-year comparison for an 18-week period.

The stock trades at $368 right now and analysts have given it a target of $400. Good times or bad, Costco is a safe haven for investors.

AT&T (T):

AT&T is a dividend investor’s dream stock. The stock trades at $30 and has a forward yield of 6.95%. The company has tons of cash to distribute to its investors and doesn’t hesitate to do so. AT&T expects to generate free cash flow in the $26 billion range in 2021 (exclusive of proceeds from potential asset divestitures).

The stock had a bad 2020 thanks to the pandemic. Its major media plays HBO Max and the Warner Media acquisition couldn’t contribute much as shooting almost ground to a halt during the lockdowns. Multiplexes were shut through the year and the media business suffered.

 As 2021 sees the economy opening up, its media and advertising businesses should get a solid shot in the arm and the numbers should start adding to the bottom line. The company has slid 21% in 2020 and the company is taking measures to reverse the trend.

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The Good Doctor 1 month ago Member's comment

Good read, thanks.