Latest Stock Buy or Sell? Make More Informed Decisions!

An entire class of equities, semi-conductors, is under pressure. I'm singling it out Intel, because it's one of the few chip (or tech) stocks that pays a decent dividend (2%). China is a major customer of these chips, and Intel (AMD, Micron et al) rode a wild rollercoaster during the U.S-China trade war. Investors who clung to those stocks were eventually rewarded with returns that beat the Nasdaq (Intel gained 32% vs. the Nasdaq's 18% in the past 18 months). Though Intel's revenue growth YOY is only 1.58%, it boasts a five-year return of 92.04%. Adopting the same long-term hold strategy, investors should be rewarded again, though they may suffer serious dips along the way. Brian Acker is a complete bull, targeting $100 for INTC-Q. However, Kim Bolton, a technology analyst, would wait until a key supply problem involving one of Intel's chips is resolved, likely this quarter.

Why bother with the U.K? The British stock market remains one of the strongest in the world and actually matched the TSX's performance in the 30 months after the pivotal June 2016 referendum (the FTSE fell off in 2019). Where to invest? Forget the British banks. They're already slumping, burdened by near-zero interest rates. Better to look at a long-term investment like GlaxoSmithKline (GSK), traded in New York as well as London. Robert Lauzon warns that a hard Brexit would pressure the UK pound and, by extension, GSK's bottom line, though he considers the pharma company fine overall with its dividend at 4.27% (New York) or 5.16% (London). GSK spun-off a US$12.7 billion consumer healthcare company with Pfizer to refocused on pharmaceuticals and growth. Paul McDonald views this is a likely long-term asset. Since September, four analysts have upgraded GSK, three of them to a buy. Like so many British stocks, GSK faces post-Brexit risk, but it's worth considering for the long run.

Paul McDonald also recommends GSK's peer, AstraZeneca (also trading in New York and London). The pharma is focusing on its pipeline of drugs that can't be easily replicated. A third of its sales comes from the U.S., plus 20% from China, which may actually be a tailwind in this context. The New York stock (AZN-N) pays a 2.87% dividend and the London one pays 2.95%

Another consideration is Benckiser (RBGLY:OTC) which owns a wide portfolio of consumer products (e.g. facial washes, heartburn meds, condoms, cleansing pads, sore throat solutions). These are products that consumers will buy even in a recession, which makes RB defensive. Another plus is that RB products are sold in more than 200 countries with the U.K. totaling only 8% of revenues (from 2018). So, if British consumers do tighten their wallets if there's no trade deal, then RB is largely protected from that hit. Also, RB pays a decent yield of 2.32%, but boasts 16 straight dividend increases. That said, RB suffered a “modest decline” in operating margins last October when it guided down, but the new CEO plans to unveil a new plan this month when the company reports annual results. Again, RB isn't a screaming buy, but it's a fairly safe, long-term bet.