Substitute One Dividend Staple for Another

We’re now headed into the August-September “danger zone,” where many market accidents have occurred over the years. Here in 2015, the time slot may prove especially tricky, because the Federal Reserve is mulling an increase in short-term lending rates, perhaps as soon as mid-September. (The Fed’s press release Wednesday hinted that a rate hike may be near.) Please understand: I’m not pressing the panic button. The odds of a recession — and with it, a market train wreck — still seem quite remote. Nonetheless, we should dial back our risk ever so slightly.

One potential stock you could trim is Mondelez International (MDLZ). The cookie, chocolate and snack maker recently posted higher second-quarter earnings than Wall Street was expecting. As a result, MDLZ stock zoomed 5% to an all-time high. On the flip side, I think the Street took too dim a view of quarterly results from Procter & Gamble (PG). PG reported flat “organic” sales, stripping out currency moves and acquisitions and divestments, for the June quarter and only a 1% gain in the past year. The company also issued a tepid earnings forecast for the upcoming fiscal year.

Source: InvestorPlace

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