The ongoing coronavirus outbreak spurred another massive downturn on Monday. The Dow Jones dropped nearly 3,000 points – or 12.7%.
This was the market's worst single day since 1987. Meanwhile, the S&P 500 fell to its lowest level since December 2018.
Right now, the S&P 500 is sitting at 2,386. That figure is roughly 18 times earnings and is getting very close to reaching fair value.
The pullback has brought the S&P 500 down to a critical support level near 2,350. And now many investors are seeing this as an opportunity to slowly begin buying stocks with strong balance sheets and dividends.
If you're looking for guidance and are eager to put money to work, it's important to be cautious.
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But you can start by purchasing solid companies that will thrive during the coronavirus outbreak or will be the key survivors once the pandemic passes.
Here's why you should consider dollar-cost averaging into the following top dividend stocks…
Dividend Stocks to Buy, No. 3: CVS Health Corp.
On Monday, CVS Health Corp. (NYSE: CVS) surprised investors with a strong forward guidance and earnings report that topped expectations.
I paid very close attention to the earnings call. CVS's pharmacists will be on the front lines of the war against coronavirus as they are preparing to offer tests for COVID-19.
Drive-thru testing centers will allow customers to remain in their vehicles and would not expose other customers inside the stores.
CVS is poised to be a safe bet in this current market as prescriptions must remain filled, and patients plan to rush for testing at a moment's notice.
The company has $8 billion of cash on hand and a relatively low debt to equity ratio of 1.
Shares of CVS pay a stable dividend of 3.8%. And investors can anticipate increasing demand around the country regardless of the broader economic downturn that investors face.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.