Hold On To Your Galleons! Will These Magical Stocks Shield You From Economic Horcruxes?!

The Market's Gone Wonky! What's a Wizard to Do?

Blimey the market's been more unpredictable than a flock of angry pixies lately! One minute we're soaring higher than a Firebolt the next we're plummeting faster than Gilderoy Lockhart's reputation. According to this Jenny Harrington a Muggle investor some dividend stocks might just be the 'Protego' charm we need. Apparently after some bloke named Trump announced some tariff policy the market went berserk. Honestly sounds like something Voldemort would do causing chaos just for the fun of it!

Steady Income Charms: More Than Just 'Accio Money!'

Harrington who sounds suspiciously like a no nonsense Head Girl focuses on income that keeps flowing 'even during difficult times.' She reckons this helps investors avoid making rash decisions when the market throws a tantrum a bit like how a calming draught helps Ron when he faces Aragog. "The emotional comfort that this portfolio brings... is a huge risk mitigating factor," she says. Sounds a bit like Dumbledore's calming presence during a Death Eater attack doesn't it? Her strategy comes from her father being a serial entrepreneur so the family saw "very high highs and very low lows." The financial swings were nauseating and severely anxiety inducing," Harrington recalled. "Somehow through all these weird twists and turns I gravitated towards an investment strategy where even when there was financial volatility in the background … there's completely steady income throughout," she said.

Unlocking the Vault: Harrington's Golden Rules

So how does this Muggle witch find these magical money trees? She wants stocks with a dividend yield over 3.5% and a market capitalization of over $150 million. Then she checks the sector industry earnings and dividend growth rates. She also makes sure earnings cover the dividend which is like checking if your wand is powerful enough to cast a Patronus. Apparently 'Every company is fundamentally and individually researched with the eye towards – can we go through an environment like we're in right now and the income remains uninterrupted?' To gauge that ability she looks at whether they were able to maintain their dividend during the global financial crisis and the Covid 19 pandemic.

ConAgra: More Than Just Frozen Peas?

First up ConAgra with a 5.4% dividend yield. Harrington reckons it's undervalued. Apparently 91% of their revenues come from the U.S. She says 'They have on average a bit healthier product line than most of their peers,' and they should be 'relatively insulated.' Seems like a good bet even if their frozen peas aren't quite as exciting as Bertie Bott's Every Flavor Beans.

Ryman Hospitality Properties: A Conference Center Charm?

Next Ryman Hospitality Properties. This company has big non gaming conference centers that get booked by large companies for annual meetings two to five years in advance she said. It also has a big cancellation fee if things really went south with the economy. 'The rest of the hotel REITs are highly leveraged and they do have a problem if there is a recession,' she said. 'This one's just really [the] baby thrown out with the bath water.'" Sounds like a solid plan especially if you're planning a massive wizarding convention. Let's just hope they have enough rooms for everyone!

Bristol Myers Squibb Kinder Morgan and Verizon: The Final Triumvirate!

Finally Harrington suggests Bristol Myers Squibb Kinder Morgan and Verizon . She says 'Kinder Morgan may be considered "kind of rich" — trading at 19 times earnings — but it has about 11% earnings growth ahead.' As for Verizon investors can get a juicy 6.4% yield. Harrington says that "We don't know yet who is going to bear the brunt of an increase in iPhones but there is no diminishment in the usage of cell service or in the use of Verizon service." So there you have it folks! Some Muggle advice on how to navigate the market's wild swings. Maybe it's not as exciting as facing a dragon but hey at least you won't get singed!