The S&P 500 is experiencing a downturn, with bond yields rising, particularly the 10-year Treasury note, which has reached over 4.6%. Adam Parker, founder of Trivariate Research, notes that the traditional defensive sectors, which once made up nearly 30% of the S&P 500's market capitalization, now account for just over 10%.
In response, Trivariate has identified stocks with a history of consistent dividend growth, projected sales growth of at least 7%, and anticipated earnings growth of 10%. Among the highlighted companies is Rollins, which recently increased its dividend by over 10% and has a current yield of approximately 1.4%.
Goldman Sachs analyst George Tong maintains a buy rating on Rollins, citing its potential for double-digit growth. Cheniere Energy also appears on the list, having raised its quarterly dividend by more than 10% and currently yielding 0.9%. The company has seen a 26% stock increase this year, driven by reduced LNG production in the Middle East.
Mizuho analyst Gabriel Moreen rates Cheniere as outperform, noting strong volume and project execution. Other notable companies mentioned include Microsoft, Abbott Laboratories, AbbVie, and Stryker, which are also seen as potential defensive plays in the current market environment