The COVID-19 coronavirus pandemic is an unprecedented crisis that put the economy into a virtual standstill. Weathering the storm best are blue-chip corporations that are known for the value they contribute to the world and their ability to do well during downturns.
The following is a discussion regarding 3 outperforming blue-chip companies.
British American Tobacco (NYSE: BTI), a London-based company that acquired Reynolds American in 2017, is among the highest-yielding picks. Despite holding second place in the U.S. market, however, the company is facing several challenges, including a downtrend in cigarette sales. As a result, the company has leveraged pricing power and innovation to maintain revenue growth.
Alibaba Group Holding's (NYSE: BABA) e-commerce business, despite the pandemic, managed to show growth as investors over the globe are becoming increasingly dependent on Alibaba's marketplaces to reach Chinese consumers. Aside from expansion into territories like Europe, Alibaba is developing its cloud platform, a competitor to Amazon.com Inc's (NASDAQ: AMZN) AWS.
The allure of Johnson & Johnson (NYSE: JNJ) is its predictability and impressive insulation from recessionary conditions. It is a true stock from the ‘grandparents' era. Its 2.5% dividend and cash cow status make it an evergreen jewel. It is also preparing its own SARS-CoV-2 vaccine candidate as the first phase of human clinical trials is planned to begin in September 2020.
During the pandemic, McDonald's Corporation (NYSE: MCD) shares withstood the volatility as its drive-thru business calmed investor's nerves.
During the 2008 crisis, when General Electric Company (NYSE: GE) was on the verge of slashing its dividend, McDonald's increased its payout, adhering to an annual ritual successfully maintained for 43 years. That year alone, McDonald's outperformed the S&P 500 by 46 percentage points.
McDonald's is expected to outperform in 2020 and many years after.
This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: email@example.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: firstname.lastname@example.org Questions about this release can be sent to email@example.com
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