After posting a 1.3% increase in June, the CPI for all urban consumers stayed steady in July. Overall, the all-items index increased by 8.5% in July. Consumers are spending less on luxuries and more on necessities like food and utilities. Aggressive rate increases by the Fed could push the economy into a downturn. Two consecutive quarters of negative GDP growth and an inverted yield curve have long been recognized as signs of a recession. The first half of 2022 saw a decline in the US economy’s GDP; in July, the yield on two-year Treasury notes surpassed that on the 10-year note. Investors are shifting their focus to fixed-income investments and value due to the frighteningly high inflation and interest rates. The Nasdaq Composite has lost more than 20% of its value so far this year as of August 23. Investors prioritize defensive and noncyclical sectors in these circumstances.
Insider Monkey picked the 10 best defensive stocks under $50. OGE Energy Corp. shares now have a forward dividend yield of 3.89% and are trading at a P/E ratio of 9.11x as of August 23. The business’s quarterly revenue increased by 39.19% year over year to $804 million. On August 3, Sprouts Farmers Market, Inc. reported $0.57 in earnings per share for the fiscal Q2. $1.60 billion was the company’s total quarterly revenue, an increase of 4.83% over the previous year. Over the past year, Campbell Soup Company has increased by 19.73%. The company generates free cash flows of $991 million, which the stock’s forward dividend yield of 2.88% supports. Wall Street analysts see little future growth for Campbell Soup Company. The annual payout ratio for Hormel Foods Corporation is 55.49%, while the company’s five-year dividend growth rate is 9.37%. The company has increased 11% over the last 12 months as of August 23 and offers a forward dividend yield of 2.05%. On July 22, Conagra Brands, Inc. announced a $0.33 quarterly cash dividend per share. The company generates free cash flows of $712.90 million and its shares offer a forward dividend yield of 3.76%. For more details, click the 10 Best Defensive Stocks Under $50.
