5 of the Best Stocks to Reverse the ‘Sell in May’ Trend

This article was originally posted here

Wall Street’s promising six-month “sell in May and go away” period has come to an end. The adage is based on historical evidence showing that the stock market yields the best returns between Halloween and May Day, while the May-October period witnesses a substantial slump in investments. 

Mostly, lower trading volumes in the summer season and a substantial increase during the winter months are the main factors backing the trend. 

But the stock market hasn’t quite conformed to the pattern so far this year. After all, gains have been muted this year due to the coronavirus pandemic, leading to supply chain disruptions and decline in corporate profits. Global economic growth took a beating, with manufacturing activities mostly bearing the brunt. Major bourses may have seen the best April in years, but have still ended last week in the red, with the Dow and the S&P 500 finishing the week down 0.2%.

So, are summer months following weak winters good for stocks? When the stock market had a bad winter last time, it bounced back during the summer months. From Halloween 2008 to May Day 2009, the Dow was down 12.4%. Over the subsequent six-month period, the blue-chip index jumped 18.9%. 

Regrettably, such an encouraging reversal appears to be rare. This is because since the Dow was created in 1896, the blue-chip index has lost an average 1.6% in summers that followed winters in which the stock market has declined. This is in contrast to an average summer gain of 1.8%. 

But what happens in a presidential election year like 2020? Normally, the Dow produces an average gain of 4.1% during the summer months of presidential election years. But in presidential election years that have losing winters, stocks take a hit in the summers as well, posting an average loss of 0.6%. 

Things aren’t looking up for the stock market as of now. Mounting concerns that businesses would witness lasting damage of the virus outbreak continue to spook investors. Renowned investment guru Warren Buffett’s company Berkshire Hathaway has given up stakes on four of the largest U.S. airliners in the wake of the outbreak. 

Amid these, markets recoiled after President Trump threatened to reignite the U.S.-China trade war over coronavirus. Trump intensified his attack on Beijing by claiming that he has evidence that shows the deadly virus originated in a China laboratory. What’s more, the White House now may renew tariffs on China imports in retaliation, thereby escalating the trade tiff. 

Earlier this year, Washington and Beijing de-escalated trade tensions but the progress has been derailed by the blame game over the outbreak that has infected millions across the globe, with the United States registering the highest official death among all countries so far. 

How to Invest in Such Torrid Times? 5 Choices 

From historical seasonal patterns to Trump’s criticism on Beijing’s handling of the pandemic, the stock market faces acute uncertainty this month.  

Thus, focusing on dividend stocks is the best approach during such times. Top dividend stocks pay out a healthy yield and have encouraging prospects, and are less susceptible to market downturns. Their large customer base, sustainable business model, long track of profitability and strong liquidity allow them to offer sizable yields on a regular basis, regardless of market direction. 

To top it, dividend stocks with low volatility are chosen as they tend to hold up better in tough times. In order to screen for low-volatility stocks or which are inherently less volatile than the markets they trade in, low-beta needs to be considered. In this case, a low beta ranges from 0 to 1. By the way, a beta is a measure of volatility that shows how closely a stock’s price movement correlates with a benchmark. 

Further, we have selected stocks that flaunt a Zacks Rank #1 (Strong Buy).

GAIN Capital Holdings, Inc. (GCAP) is a U.S.-based provider of online trading services. It has a beta of 0.07. GAIN Capital Holdings has a dividend yield of 3.8%, while its five-year average dividend yield is 3.6%. The company’s expected earnings growth rate for the current quarter is 230%. 

National General Holdings Corp (NGHC) is a specialty personal lines insurance holding company. It has a beta of 0.82. National General Holdings has a dividend yield of 1.1%, while its five-year average dividend yield is 0.7%. The company’s expected earnings growth rate for the current quarter is 11.9%. 

The J. M. Smucker Company (SJM) is a leading marketer and manufacturer of consumer food and beverage products and pet food and pet snacks. It has a beta of 0.16. J. M. Smucker has a dividend yield of 3.1%, while its five-year average dividend yield is 2.7%. The company’s expected earnings growth rate for the current quarter is 9.5%. 

B&G Foods, Inc. (BGS) sells and distributes high quality, shelf stable, frozen food and household products. It has a beta of 0.19. B&G Foods has a dividend yield of 9.7%, while its five-year average dividend yield is 6.2%. The company’s expected earnings growth rate for the current year is 1.8%. 

Atmos Energy Corporation (ATO) is engaged in regulated natural gas distribution and storage business. It has a beta of 0.33. Atmos Energy has a dividend yield of 2.3%, while its five-year average dividend yield is also 2.3%. The company’s expected earnings growth rate for the current quarter is 13.2%.

Editor's Note:

Shocking Video Reveals The Near-Perfect Trading Strategy

51 Winners in One Day with this Proven Strategy

After a 15 year deep-dive study of investing strategies, one “brain-dead simple” strategy stands alone.

Not only does this strategy automatically boost investors’ returns by nearly 3X…

It also reduces their downside risk — which is more important now than it has been in years — AND eliminates the guessing that leads to bad investment decisions.

Using the single most powerful stock indicator (which less than 1% have heard of)…

My company recently used this strategy to recommend 51 profitable trades in a single day.

The secret: this is what Wall Street’s richest investors really use to build fortunes in today’s market.

Click here to see which stocks this strategy recommends today.

Is Amazon Obligated to Pay You?

Thanks to a U.S. law, you can claim your slice of this jackpot and collect up to $48,000 over the next year.

Enter your email below to find out how.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 Energy Pick

This little-known Silicon Valley company is using AI to do something incredible…
Enter your email address to receive the name and ticker symbol of the #1 tech bargain stock now.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

#1 EV Breakthrough of 2022

Louis Navellier is about to give away the ticker symbol of an overlooked battery company… one set to skyrocket in value as the EV boom gets underway. 
Simply enter your email below to learn the name of this company today…


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Anyone can invest like “The People’s Shark” with as little as $100

You no longer have to be rich, famous, or powerful to become an angel investor. Starting now, it’s possible for you to get involved in these life-changing deals.
Enter your email address for all the details of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

Is L.A.S.E.R. The Greatest Tech Breakthrough in History?

A $3.5 trillion megatrend… spearheaded by Elon Musk is bringing what could be the most disruptive, revolutionary tech breakthrough the world has ever seen, with one small company sitting at the center.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

2,467% Return on Israeli Laser Company

Learn the 3 Steps You Need to Protect Your Retirement and One Stock that Could Soar 2,476% in Nine Months.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

One Tweet From Elon Could Blow This Story Wide Open

Last year, anyone who listened to this man about Tesla could’ve made EIGHT TIMES their money. Now he’s revealing how Elon’s NEXT big move will revolutionize ANOTHER massive $23 trillion market.
Enter your email address to receive the name and ticker symbol of this once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

$25 to Profit from 20,000 IPOs

Days from now — 20,000 ‘IPOs’ could start flooding the market…
Enter your email address to reveal how anyone with $25 can stake their claim.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works

"Bio-Chip" Sparks Potential 199,900% Surge by 2025

Sign up below for all the details on this tiny company being considered a once-in-a-lifetime investment opportunity.


By submitting your email address, you give Todays Top Picks permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. You can unsubscribe at any time To review our privacy policy, click here: Privacy Policy | How it Works

By submitting your email address, you give Today’s Top Stocks and Morning Bullets permission to deliver the report or research you’re requesting to your email inbox. You can unsubscribe at any time. To review our privacy policy, click here: Privacy Policy | How it Works