A long-overdue sell-off is probably coming and may start right after the election. While it doesn’t necessarily mean a market crash, it could mean a fast and furious 10%, 15%, or even 20% bear market territory drop. We have been looking for ideas that could stand up best in a swift sell-off, and the group commonly known as the “sin stocks” may be just the ticket for worried investors.
One of the categories on Wall Street that some portfolio managers don’t want to discuss in their portfolios is the so-called sin stocks. These are companies that sell tobacco and alcohol products, run gambling casinos, sex-related industries, weapons manufacturers, and now even marijuana producers. While they don’t all seem sinful at the margin, some money management companies, like some investors, refuse to own them.
We screened our 24/7 Wall St. sin-stock research database and found five companies that pay dependable high-yield dividends and look like great ideas for growth, and income investors worried that we could be on the ledge of a big sell-off. All are rated Buy at top Wall Street firms.
This post originally appeared at 24/7 Wall St.