No one enjoys seeing their investment portfolio balances tumble. But that's exactly what has happened for many investors so far this year as stocks sank.
Don't let the volatility make you hesitant to keep investing, though. Here are three stocks to buy now if you're anxious about the stock market.
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1. Dollar General
The main reason behind the stock market's recent tumult is that investors are concerned about interest rates rising. While higher rates help control inflation, they also sometimes set the stage for a recession. Dollar General (DG -0.08%) stands out as a stock that should perform well during both good and bad economic periods.
It makes sense that Dollar General's business would pick up during a down economy. Consumers are more likely to shop at discount stores when they're trying to stretch their money.
But what about during economic booms? Dollar General's shares trounced the S&P 500 during the 10-year period ending Dec. 31, 2021, soaring 669%. The key to that impressive gain was the retailer's strategy of adding more stores.
That strategy remains in place. Dollar General plans to add 1,100 new stores and triple the number of its suburbs-focused pOpshelf stores in fiscal year 2022. Unsurprisingly, the consensus Wall Street price target for the stock reflects a 17% premium to Dollar General's current share price.
2. Easterly Government Properties
The best kind of stock to buy when you're anxious about the stock market is one that offers tremendous stability. Easterly Government Properties (DEA 0.85%) fits the bill perfectly.
Easterly Government Properties is a real estate investment trust (REIT) that focuses on, as you might have guessed from its name, government properties. The company currently owns 89 properties, nearly all of which are leased to U.S. government agencies.
This stock should continue to grow because of three main factors. First, the market dynamics for leasing to federal agencies continue to be favorable. Second, this market is fragmented, with no real estate company owning more than 5.4% of federal properties. Third, there are high barriers to entry in the market.
You can make money by investing in Easterly even if its stock doesn't skyrocket, though. As a REIT, the company must return at least 90% of its taxable income to shareholders through dividends. Easterly's dividend yield currently tops 5%.
3. Johnson & Johnson
Johnson & Johnson (JNJ 0.29%) stands out as another great stock that offers reassuring stability to nervous investors. The healthcare giant has been in business since 1886. J&J has weathered recessions, depressions, world wars, and more.
It helps a lot that J&J's products enjoy consistent demand regardless of what happens with the stock market or the economy. Patients won't turn away from the company's prescription drugs, medical devices, and consumer health products because of external factors.
Johnson & Johnson will give investors something to especially cheer in the not-too-distant future. The company plans to spin off its consumer health unit. The transaction, which is expected to close in 2023, will leave J&J with its faster-growing pharmaceutical and medical device businesses.
There's no reason to worry about Johnson & Johnson's dividend with this spin-off. The yield currently stands at nearly 2.5%. J&J anticipates that the combined dividend of the two companies emerging from the separation will be at least as high as the dividend payout prior to the transaction.
