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Bahnsen: buy these stocks to insulate against ongoing volatility


The rising geopolitical tensions have kept investors on the backfoot in recent weeks. Amidst the ongoing volatility, David Bahnsen says the following dividend stocks are a great pick.

Clorox Co (NYSE: CLX)

His first stock is Clorox Co, down more than 20% from its high in mid-January, which makes it a great “valuation story”. This afternoon on CNBC’s “The Exchange”, Bahnsen said:

Clorox is a very interesting consumer staple. It doesn’t fight against private label, white label competition much. It has a great market share, a diversified brand portfolio. Yes, they’ve had margin issues like everybody, with input prices rising. But we think they have a great plan to rise above that.

Earlier this month, the consumer and professional products company blamed inflation as it reported weak results for its fiscal second quarter. Clorox, however, raised its full-year profit and sales guidance.

Exxon Mobil Corp (NYSE: XOM)

According to the founder of Bahnsen Group, oil at $95 a barrel at present is up to 20% above where it should be. Still, he likes Exxon Mobil as means to insulate against market volatility. Bahnsen noted:

Exxon is making an awful lot of money even with $50 oil, let alone $95. It’s cut so much cost over the last couple years, continued to pay out its full dividend through COVID, even grew it modestly last year. Now, we like both upstream and downstream. It has impressed us with capital discipline.

Exxon’s net income was up $2.12 billion sequentially in its latest reported quarter. Bahnsen is also bullish on Walmart Inc amidst uncertainty that has the benchmark S&P 500 down 10% for the year.

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