The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
With many years of experience under the belt, most experienced investors have taught themselves to recognize any sign alluding to a coming market crash to take action to protect their portfolios better.
Over the last couple of months, the stock market has seen a notable increase in its volatility, leading many of these investors to speculate that a new market crash is soon to come.
Whether it will happen or not is still anybody’s guess, but there’s solid reasoning to believe it might.
What can you do to protect your portfolio? Maintain your current investment strategy while also fortifying your collection with some new and sturdier stocks to ensure that any potential adverse effects from the market don’t have a strong influence on your overall investments.
Here are some stock recommendations that could help keep your portfolio’s balance while still representing an opportunity for profit for the next couple of decades.
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson is a well-known, big-time developer of various consumer products, medical devices, and pharmaceuticals.
Just considering that line of products alone already represents a reliable opportunity for investments, as they’re a need that the average consumer must always have covered. In the way Johnson & Johnson deals with its business, it is more than enough to fuel a consistent balance-sheet growth.
Also, Johnson & Johnson is a company with an excellent dividend track record. Not only have they maintained their dividends steady and constant for their shareholders, but they have also been increased every year for the last 60 years.
If that’s not convincing already, the company has been around for nearly 140 years. They’ve already revealed plans for the company regarding what they’re going to offer to the public next. So there’s no reason at all to doubt whether its success can last for much longer.
In short, Johnson & Johnson is a company with solid financials, strong track records of growth, and, overall, extremely profitable. So it stands to reason that any investor would be interested in it even at low market points.
Microsoft (NASDAQ: MSFT)
Microsoft is a company that should be on any investor’s radar at any given time.
For starters, while it pays a relatively modest dividend, it has a knack for increasing it from time to time.
However, what’s exceptional about Microsoft is its constant growth and resilience that one can appreciate during any high or low stock market point. In the first and second quarters of the fiscal year, Microsoft’s top-line reported 12% and 17% growth.
On a similar note, Microsoft’s ever-growing expansions into other areas of businesses also go through the same kind of deal.
In short, Microsoft is a company that just never stops growing, and in remarkable numbers too. There’s little to no difference when it comes to other segments. As long as it is part of Microsoft, then it means that it has enough growth expectancy at hand.
Furthermore, Microsoft has a solid foundation regarding its cash-to-debt radio. Currently, the company holds around $132 billion in cash. That more than enough to cover any near-future debt and their shareholders’ dividends.
Any Microsoft investor can rest assured that their needs will be well covered, even during a recession.