Investment firm Raymond James has released its July
performance recap, summing up the fourth month of the economic recovery. The
firm notes that the early weeks of this recovery cycle showed a V-shaped
turnaround for the economy, which has since slowed, taking a “treading water”
patter. Raymond James sees defensive stock plays in a strong position, as they
have somewhat outperformed since the second week of June.
Raymond James strategist Tavis McCourt sees the slowing
pattern as predictable, and linked to the pace of Congressional action on
recovery stimulus packages. McCourt writes, “With D.C. negotiating another
package, it is likely that high frequency economic data will decelerate in
early August before another round of stimulus is signed, but the market clearly
believes the likelihood is that more direct support at similar scale is likely
through the election.”
This makes defensive stocks part of a consistent strategy,
to keep returns coming in for reinvestment. With this in mind, we used TipRanks database to pull up
the stats on three stocks that Raymond James analysts have tapped as buying
propositions. These are stocks with a specific set of clear attributes, that
frequently indicate a strong defensive profile: a high dividend yield -- over
8%; and a considerable upside potential.
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