Family Dollar Stores, Inc. (FDO), Kellogg Company (K) The Next ‘Fiscal Cliff’ Is Coming: 2 Stocks To ‘Government-Proof’ Your Portfolio

Page 2 of 2

The company recently announced a management restructuring that could help streamline decision-making. Kellogg Company (NYSE:K) has continued to outperform and has beaten the S&P 500 by 12% since last September. The shares have gotten a little pricey at 23.3 times trailing earnings as investors have bought into the high dividend yield and strong price performance. Any weakness in the shares could present an opportunity to add to a position as revenue growth is fairly stable and the company has extremely strong cash flow. The price still has a way to go before my $68 price target and will churn out a 2.9% dividend in the meantime.

Risks to Consider: Despite their resilience against a government-induced sell-off in stocks, these two picks still present company-specific risks that should be diversified with a portfolio of other names. Look for other names with non-cyclical and government-resistant revenues to weather the upcoming storm.

Action to Take –> You may not be able to completely avoid the losses associated with the market volatility around the coming debt ceiling or fiscal cliff negotiations, but these two stocks are a good start to a defensive position with some great potential upside.

P.S. — Given our dysfunctional government, predicting a reprise of the fiscal cliff fiasco wouldn’t have surprised anyone last year. However, our latest report, “The 11 Most Shocking Investment Predictions For 2014,” could surprise you — and earn you surprising returns. Our previous predictions have returned up to 310% gains in a year. To hear our latest, click here.

– Joseph Hogue
The article The Next ‘Fiscal Cliff’ Is Coming: 2 Stocks To ‘Government-Proof’ Your Portfolio originally appeared on StreetAuthority and is written by Joseph Hogue.
Joseph Hogue does not personally hold positions in any securities mentioned in this article. 
StreetAuthority LLC does not hold positions in any securities mentioned in this article.

Warren Buffett’s Top 5 Stocks

Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE.


Page 2 of 2