For the second time in less than a week, a major firm that we cover here at 24/7 Wall Street is touting the potential of large cap blue chips that have an increased overseas exposure. In fact, a new JPMorgan research report notes that the top U.S. multinationals are down a stunning 30% since the end of 2013, versus an 11% gain for the S&P 500. Strength of the dollar and a total rout in the commodity sector and a divergence in the U.S. and global business cycles all helped to push this underperformance.
JPMorgan analysts point to the easing of the dollar, a more dovish Federal Reserve than many saw at the beginning of the year, and some early signs of manufacturing stabilizing as among the reasons for their bullishness going forward. The analysts have a large basket of 30 stocks that contain multinationals they are positive on. We screened the basket for some of the top dividend payers and found four that look very attractive now.
Let's take a closer look for those: CAT, CVX, JNJ, PM
Source: 24/7 Wall St