FPI ) AGNC Investment Corp. ( NASDAQ: AGNC ) and its yield in <9% would be ripe for the picking.
Mortgage REITs are companies that borrow money at lower short-term rates to buy assets with higher long-term returns, such as mortgage-backed securities . The difference between the returns they receive on their assets held minus their borrowing rate is known as the net interest margin.
Typically, the bond yield ds curve 'accentuates during the early stages of an economic recovery, and that ' s where we are now. When this happensAs a result, it is quite common for mortgage REITs to see their net interest margins increase.
Additionally, AGNC Investment 's portfolio of assets is almost entirely devoted to agency assets - that is, securities guaranteed by the federal government in the event of default. This additional protection allows AGNC to use leverage wisely to its advantage in order to increase its profitability.
Source of Image: Images.
Bristol Myers Squibb
When stock market volatility increases, put your money to work fors industries and defensive sectors is generally a good idea. This is why pharmaceutical stock Bristol Myers Squibb ( NYSE: BMY ) would be the perfect purchase.
Bristol Myers caused a stir when it acquired cancer and immunology drug developer Celgene in 2019. Celgene's leading cancer drug, Revlimid, has increased its sales annually by 'a double-digit percentage for over a decade, and the company has enjoyed strong pricing power, label expansion opportunities, and longer shelf life. Revlimid brought in over $ 12 billion to Bristol Myers last year and is protected against a flood of genericsues until early 2026.
However, Bristol Myers Squibb isn't just relying on acquisitions to get the job done . Eliquis has become the undisputed global oral anticoagulant therapy of choice, and cancer immunotherapy Opdivo has sales of approximately $ 7 billion in 2020. With Opdivo reviewed in dozens of clinical trials in the label's expansion opportunities are very promising. <
Image source: Pictures.
Another defensive stock that can be bought with confidence during a stock market crash or sharp short-term decline is electric utility NextEra Energy ( NY SE: NEE ) .
Most Utilities stocks are slow growing companies that rely on predictability of demand for their services. This is what makes them solid pidend stocks and a good bet to beat the US inflation rate in effect for more years than otherwise. what makes nextera so special is its focus on alternative energies.
NextEra is put between 50 and 55 billion dollars to work on predominantly projects of 'green energy between 2020and 2022 and is the main utility by solar and wind capacity in the country. Relying on renewables has lowered the cost of generating electricity and pushed the company's growth rate to high numbers for more than a decade.
Keep in mind that NextEra's traditional utility operations (i.e. those that are not powered by wind or solar power) are regulated. Although the company cannot pass alo if the prices rise when it wants, it is not exposed to potentially volatile wholesale electricity prices. This is a highly predictable and profitable utility stock.
Image source: Images.
Green Thumb Industries
What we have learned about cannabis during the coronavirus pandemic is that it is treated as a staple consumer good. , people keep buying weed no matter how good or bad the economy is. This means that a crash would be a great opportunity to buy the multi operator. US States Green Thumb Industries ( OTC: GTBIF ) .
Green Thumb currently has 59 dispensaries in total business and 110 retail licenses in 13 legalized states. He was particularly picky about the states in which he chose to operate and focused on the states whereù licensing is capped by regulators. This will minimize the number of competitors it encounters.
The the real secret to Green Thumb's success , and why it has managed to break through to recurring profitability, is the right amount of revenue generated by derivatives, such as as vapes, oils and edibles. Derivatives are much less likely to face over-supply issues, compared to dried cannabis flower, and they produce higher margins. Suffice it to say that Green Thumb can show opportunistic investors the green if bought during a crash.
Image source: US Bank (US Bancorp is its parent company).
One last company to buy the hand in hand is regional banking giant US Bancorp ( NYSE: USB ) .
Same if the bank shares tend to get hammered in crashes or corrections, US Bancorp has proven time and time again that it is in a class of its own among the big banks. chasing the risky derivative investments that previously crippled the banks. It It is perhaps not surprising that it also offers one of the best returnsjuicier of the big American banks at 3.4%.
The capacity of compel customers to do digital banking . In the quarter ended in May, 80% of all transactions were done digitally, which included just under two-thirds of all loan sales. The more its customers adopt digital banking, the more branches the company can close. And the more branches it consolidates, the lower its non-interest charges will be.