When catastrophe hits the stock market, stupid people sell while smart people buy.
Therefore, the coronavirus pandemic could be a great opportunity to pick up some great stocks at a low price. Hence, now is the time to start bargain hunting in the markets if you have the money.
Thus it could be a great time to follow the advice of 19th Century British banker Baron Rothschild who reportedly said: “Buy when there’s blood in the streets, even if the blood is your own.” In other words, coronavirus could be a great opportunity for contrarian investors.
Essentially, contrarian investing means buying when everybody else is selling. Thus, a contrarian investor goes shopping when everybody else is panicking. Thus, now could be the time for contrarian investing.
Contrarian Stocks for the Age of Coronavirus
I think there are many good contrarian investments in today’s stock market. Some great contrarian stocks for the Coronavirus age include:
1. Boeing (NYSE: BA)
Boeing’s price fell from $317.90 on 24 February 2020 to $95.01 on 20 March 2020 but rose back to $158.73 on 25 March 2020.
Yet, Boeing paid a $2.06 quarterly dividend on 13 February 2020. Thus, the price of what I consider one of the best dividend stocks around fell by over two-thirds in less than a month.
I think investors need to consider Boeing because people will still fly even if all the airlines go bankrupt. To explain, governments will either nationalize airlines or bail them out. In addition, there could be far more demand for cargo planes from shippers such as Amazon (NASDAQ: AMZN) because of the ecommerce boom created by the coronavirus hysteria.
2. Caterpillar Inc. (NYSE: CAT)
Cat’s price fell from $132.17 on 24 February 2020 to $95.50 on 20 March 2020 to $104.67 on 25 March 2020.
I like Caterpillar because people will need Cat’s products; bulldozers, front-end loaders, and power shovels in any future scenario. For instance, we will need bulldozers and track-hoes, if we tear down all the stores abandoned after Amazon takes over retail. Thus, any Coronavirus stimulus could boost demand for Cat’s products.
Impressively, Caterpillar paid a $1.03 dividend on 17 January 2020. Thus, what I consider one of the best dividend stocks around is cheaper because of COVID-19.
3. The Ford Motor Company (NYSE: F)
I consider Ford one of the best bargains in the stock market today. For instance, Ford’s share price fell from $7.57 on 24 February 2020 to $4.33 on 20 March 2020 to $5.39 on 25 March 2020.
I consider Ford a value because it reported a $4.903 billion gross profit and revenues of $39.715 billion for the quarter ending on 31 December 2019. In addition, Ford had $34.651 billion in cash and short-term investments on 31 December 2019. Moreover, Ford had $258.537 billion in total assets on 31 December 2019.
Additionally, Ford paid a 15₵ quarterly dividend on 29 January 2020. Dividend.com estimates each Ford share offered a 12.12% dividend yield, a 60₵ annualized payout, and a 83.57% payout ratio on 25 March 2020.
Thus, Ford is a great value investment that makes a product most of us need vehicles. Most of us will still drive even after coronavirus. Moreover, Ford manufactures America’s bestselling vehicle, the F Series pickups. Ford sold 896,526 F-series trucks in 2019, Motor1 estimates.
I think Ford could recover and make more money than ever after coronavirus. In particular, I think Ford could make vast amounts of money from electric trucks and self-driving vehicles.
4. UPS (NYSE: UPS)
If you are looking for a stock that retains its value, UPS is worth a look. For instance, Mr. Market paid $98.49 a share on 24 February 2020 and $93.46 on 20 March 2020 and $94.50 on 25 March 2020.
Demand for UPS’s service delivery is high these days. Not even Amazon can keep up with a growing demand for services such as Prime Pantry, CBS reports. Demand for delivery is growing because many people are afraid to go to stores out of fear of coronavirus.
In addition, I consider UPS a great dividend stock. For instance, UPS paid a $1.01 dividend on 24 February 2020. Thus, I believe UPS is a great company with a great future that retains its value.
5. FedEx (NYSE: FDX)
This once overpriced giant’s share price has collapsed in recent weeks. In fact, FedEx’s share price fell from $154.85 on 24 February 2020 to $112.23 on 23 March 2020 and $118.31 on 25 March 2020.
In my opinion, the former Federal Express can cash in on the growth in online retail because of its close relationship with Walmart (NYSE: WMT). Statista estimates Walmart was the second largest U.S. online retailer in 2018. FedEx delivers most of my Walmart orders, for example.
Moreover, FedEx paid a 65₵ quarterly dividend on 6 March 2020. Thus, I think FedEx is a good stock, Mr. Market formerly overpriced. However, FedEx is cheaper now.
6. Oracle (NYSE: ORCL)
This low-cost but cash-rich technology stock has retained most of its value over the past month. For instance, Oracle’s price fell from $52.65 on 24 February 2020 to $45.08 on 23 March 2020 and $45.94 on 25 March 2020.
Meanwhile, Oracle reported a $7.832 billion gross profit for the quarter ending on 29 February 2020. Impressively Oracle had $25.858 billion in cash and short-term investments on 29 February 2020.
Furthermore, I consider Oracle a good dividend stock. For instance, Oracle will pay a 24₵ quarterly dividend on 8 April 2020.
7. Microsoft (NASDAQ: MSFT)
The price of this cash-rich dividend stock fell from $170.89 on 24 February 2020 to $136.27 on 23 March 2020 to $146.92 on 25 March 2020.
Microsoft is one of the kings of cash. For instance, Microsoft reported $134.253 billion in cash and short term investments on 31 December 2019. Thus, I think Microsoft offers a huge because safety with all that cash.
That means the 51₵ dividend Microsoft will pay on 20 May 2020 is safe. If you need income, you need to investigate Microsoft.
8. Apple (NASDAQ: AAPL)
The price of everybody’s favorite stock fell from $298.18 on 24 February 2020 to $221.42 on 23 March 2020 to $245.52 on 25 March 2020.
Meanwhile, Apple is still a cash-rich company with $107.162 billion in cash and short-term investments on 31 December 2019. Impressively Apple reported a $35.217 billion gross profit and $91.819 billion in revenue for the quarter ending on 31 December 2019.
Consequently, I think the 77₵ a share dividend Apple paid on 7 February 2020 is safe. Thus, Apple is one of the safest stocks around and its price is falling.
9. Facebook (NASDAQ: FB)
If you are looking for a cash-rich company with a great history of growth, Facebook is a good choice.
For instance, Facebook’s share price fell from $201.8 on 24 February 2020 to $148.62 on 23 March 2020 to $156.21 on 25 March 2020. In comparison, Facebook’s share price rose from $83.30 on 30 March 2015 to $201.80 on 24 February 2020.
Meanwhile, the social network has a huge pile of cash. For example, Facebook had $54.855 billion in cash and short-term investments on 31 December 2019. Additionally, Facebook reported a $17.59 billion gross profit on revenues of $21.082 billion for the quarter ending on 31 December 2019.
In conclusion, the coronavirus meltdown is a tremendous opportunity for investors with cash. Prices for a lot of great stocks are falling, so please take advantage Mr. Market’s COVID-19 hysteria. Many of us will not see such great stock prices again for years.