McDonald’s Corporation (MCD), Johnson & Johnson (JNJ): More Danger Signs for the Market

These goods have high margins, but can be a rough segment during economic weakness. This niche has also been a liability as the company has started to move overseas. For investors, however, that’s an opportunity, as management has had to retrench in an effort to shore up the company’s growth image.

That’s left the shares with a yield of more than 3%, despite a well-established record of business success. Couple that with a low beta and decades of annual dividend hikes, and now looks like a good time to use P&G to reduce your overall portfolio risk.

Opposite Day

When everyone else is increasing risk, it is time to start pulling back toward safer investments. The three stocks above are good options for remaining invested, but also keeping your portfolio’s risk profile as low as possible. Moreover, McDonald’s Corporation (NYSE:MCD) and JNJ should also be solid picks if you’re concerned about another recession. Such an economic outcome would be less kind to P&G, but that would likely just give you a good opportunity to add to an existing position in the consumer products giant.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson, McDonald’s, and Procter & Gamble. The Motley Fool owns shares of Johnson & Johnson and McDonald’s.

The article More Danger Signs for the Market originally appeared on Fool.com.

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