15 Stocks For Your Underground Bunker

Bunkers

Photo: Wikimedia Commons

McDonald’s, Johnson & Johnson, General Mills are some of the stocks that have been identified as bunker stocks in a new report by Merrill Lynch. The global bunkers were picked based on factors that tend to perform well during a downturn and largely include U.S. stocks in the consumer staples sector.

Characteristics of “bunker” companies include:

  • Low beta
  • Large cap
  • Stable earnings growth
  • High dividend yield

We’ve highlighted some notable ones.

Abbott Laboratories

Market Cap: $82.33 billion

Dividend yield: 3.4%

Trailing P/E: 18.46

Quarterly earnings growth: -13.9%

Beta: 0.32

Abbott Labs is a pharmaceuticals company that develops medical devices, pharmaceutical and nutritional products, and animal health products.

Source: Yahoo Finance / Bank of America Merrill Lynch

Baxter International Inc.

Market Cap: $33.86 billion

Dividend yield: 1.1%

Trailing P/E: 17.01

Quarterly earnings growth: N/A

Beta: 0.5

Note: EPS is measured on a diluted, trailing 12 month basis

Baxter International is an American healthcare company that primarily focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.

Source: Yahoo Finance / Bank of America Merrill Lynch

Clorox

Market Cap: $9.33 billion

Dividend yield: 3.2%

Trailing P/E: 17.58

Quarterly earnings growth: -8.5%

Beta: 0.4

Clorox is a food and chemicals manufacturer best known for its bleach product Clorox, Brita water purifiers and Burt's Bees personal care products.

Source: Yahoo Finance / Bank of America Merrill Lynch

Coca-Cola Company

Market Cap: $154.2 billion

Dividend yield: 2.6%

Trailing P/E: 12.98

Quarterly earnings growth: 17.7%

Beta: 0.6

The Coca-Cola company is a manufacturer and marketer of non-alcoholic beverages. The company offers more than 500 brands in 200 countries.

Source: Yahoo Finance / Bank of America Merrill Lynch

Colgate-Palmolive Co.

Market Cap: $42.14 billion

Dividend yield: 2.5%

Trailing P/E: 17.98

Quarterly earnings growth: 4.3%

Beta: 0.55

Colgate-Palmolive is a diversified multinational corporation focused on the production of household, health care and personal products, such as soaps, detergents, and oral hygiene products.

Source: Yahoo Finance / Bank of America Merrill Lynch

General Mills Inc.

Market Cap: $25.3 billion

Dividend yield: 2.8%

Trailing P/E: 15.79

Quarterly earnings growth: 17.9%

Beta: 0.2

General Mills is an American Fortune 500 corporation the makes food products that include well-known brands, like Yoplait, Pillsbury, Häagen-Dazs, and Cheerios.

Source: Yahoo Finance / Bank of America Merrill Lynch

IBM

Market Cap: $203.6 billion

Dividend yield: 1.6%

Trailing P/E: 14.12

Quarterly earnings growth: 10.1%

Beta: 0.72

IBM is an American multinational technology and consulting firm that manufactures and sells computer hardware and software and offers consulting services.

Source: Yahoo Finance / Bank of America Merrill Lynch

Johnson & Johnson

Market Cap: $178.9 billion

Dividend yield: 3.3%

Trailing P/E: 14.8

Quarterly earnings growth: -23.2%

Beta: 0.6

Johnson & Johnson is a manufacturer of medical devices and consumer packaged goods. Its most popular brands include Band-Aid, Tylenol, Neutrogena, and Clean & Clear.

Source: Yahoo Finance / Bank of America Merrill Lynch

McDonald's Corp.

Market Cap: $85.3 billion

Dividend yield: 2.8%

Trailing P/E: 17.38

Quarterly earnings growth: 10.9%

Beta: 0.39

McDonald's is the world's largest chain of hamburger fast food restaurants.

Source: Yahoo Finance / Bank of America Merrill Lynch

Pepsico Inc.

Market Cap: $112.08 billion

Dividend yield: 2.7%

Trailing P/E: 18.97

Quarterly earnings growth: -20.1%

Beta: 0.55

Pepsico is a Fortune 500, American global corporation that manufactures food and beverages. It's most popular brands include Pepsi, Lipton Teas, Lays, Tropicana, and Quaker Oats.

Source: Yahoo Finance / Bank of America Merrill Lynch

Procter & Gamble Co.

Market Cap: $185.6 billion

Dividend yield: 2.9%

Trailing P/E: 17.71

Quarterly earnings growth: 11.1%

Beta: 0.52

P&G is a Fortune 500 American multinational corporation that produces consumer products. Its most popular brands include Braun, Bounty, Gillette, Oral-B, Pampers, and Pantene.

Source: Yahoo Finance / Bank of America Merrill Lynch

Wal-Mart Stores Inc.

Market Cap: $193.3 billion

Dividend yield: 2.4%

Trailing P/E: 12.07

Quarterly earnings growth: 3%

Beta: 0.36

Wal-Mart is a public multinational corporation that runs chains of large discount department stores.

Source: Yahoo Finance / Bank of America Merrill Lynch

Becton, Dickinson and Company

Market Cap: $19.07 billion

Dividend yield: 1.8%

Trailing P/E: 15.31

Quarterly earnings growth: 4.8%

Beta: 0.61

Becton, Dickinson and Company is an American company that manufactures and sells health care equipment.

Source: Yahoo Finance / Bank of America Merrill Lynch

Church & Dwight Co. Inc.

Market Cap: $5.84 billion

Dividend yield: 1.2%

Trailing P/E: 21.56

Quarterly earnings growth: 4.5%

Beta: 0.49

Church & Dwight Co., Inc. is a major U.S. manufacturer of medical and dental products. Its popular brands include Pepsodent, Orajel, Trojan condoms, and Close-Up.

Source: Yahoo Finance / Bank of America Merrill Lynch

Wisconsin Energy Corp.

Market Cap: $7.31 billion

Dividend yield: 2.9%

Trailing P/E: 14.93

Quarterly earnings growth: 31.8%

Beta: 0.31

Wisconsin Energy Corp. is a diversified utilities company that serves more than 1.1 million electric customers in Wisconsin and Michigan's Upper Peninsula.

Source: Yahoo Finance / Bank of America Merrill Lynch

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