Uh Oh !! Cathie Wood Predicts “Reality Check” (Sell-off) – 5 High-Yield Dividend Safety Stocks

Following in the footsteps of David Solomon at Goldman Sachs and Jamie Dimon at JPMorgan, Ark Investments guru Cathie Wood recently warned of the potential for a reality check for the stock market after the massive Artificial Intelligence rally that has driven the major indices to all-time highs over the last three years. Of course, “Reality Check” is Wall Street word salad for a sell-off and a potential correction. While she doesn’t see an AI bubble, she did acknowledge the prospect of a reality check (a sell-off) in artificial intelligence valuations, and most likely she, like the other two Wall Street giants, is well aware that the market can’t go straight up forever. 24/7 Wall St. readers need to remember that between February and April of this year, we had a correction, and while we have rallied by more than 30% from the bottom, valuations and stock prices are indeed stretched.

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Since Ms. Wood is one of the brightest minds on Wall Street, she, like the other luminaries that are concerned over the stock markets high altitude are clearly not trying to scare investors or force drastic liquidations, she knows like everybody else who has been in the business for a long time that it’s not a question of if, but a question of when the next sell off comes. But she warned that when interest rates start to climb next year, that could be one of the major catalysts that could launch a “Reality Check”. While interest rates will most likely be lowered this week and perhaps again in December, if inflation rises sharply above current levels, you can bet it will trigger some selling, as the Fed would be forced to raise rates again.

Five 24/7 Wall St. Safety-Net dividend portfolio stocks are the perfect place to be now. They all pay dividends of at least 4% and more and have consistently raised them for many decades. Lastly, these companies have all received Buy ratings from the top Wall Street investment banks we cover.

Why do we cover high-yield safety net dividend stocks?

Our 24/7 Wall St. safety net high-yield dividend stocks offer investors a reliable source of safe passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. In addition to their large-cap strength and years of reliability, they remain a sensible choice in a challenging, volatile market.

Bristol-Myers Squibb

Bristol Myers Squibb is a global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines. This top company remains a solid long-term pharmaceutical stock, offering an outstanding entry point and a 5.61% dividend. Bristol-Myers Squibb Company (NYSE: BMY) discovers, develops, licenses, manufactures, and markets pharmaceutical products worldwide.

The company offers products in:

• Hematology
• Oncology
• Cardiovascular
• Immunology therapeutic classes

Bristol-Myers Squibb products include:

• Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
• Opdivo for anti-cancer indications
• Eliquis, an oral inhibitor indicated for the reduction in risk of stroke/systemic embolism in NVAF and for the treatment of DVT/PE
• Orencia for adult patients with active RA and psoriatic arthritis, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis

The company also provides:

• Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
• Yervoy for the treatment of patients with unresectable or metastatic melanoma
• Abraxane, a protein-bound chemotherapy product
• Implicit for the treatment of multiple myeloma
• Reblozyl for the treatment of anemia in adult patients with beta-thalassemia

Jeffetries has a Buy rating on the shares with a $68 target.

Chevron

Chevron manufactures and sells fuels, lubricants, additives, and petrochemicals. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a rich 4.29% dividend. Chevron Corporation (NYSE: CVX) engages in integrated energy and chemicals operations worldwide through its subsidiaries.

The company operates in two segments:

• Upstream
• Downstream.

The Upstream segment is involved in the following:

• Exploration, development, production, and transportation of crude oil and natural gas
• Processing, liquefaction, transportation, and regasification associated with liquefied natural gas
• Transportation of crude oil through pipelines, and transportation, storage
• Marketing of natural gas, as well as operating a gas-to-liquids plant

The Downstream segment engages in:

• Refining crude oil into petroleum products
• Marketing crude oil, refined products, and lubricants
• Manufacturing and marketing renewable fuels
• Transporting crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car
• Manufacturing and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives

It also involves cash management, debt financing, insurance operations, real estate, and technology businesses.

Chevron Corporation announced in the fall of 2023 that it had entered into a definitive agreement with Hess Corporation (NYSE: HES) to acquire all of the outstanding shares of Hess in an all-stock transaction valued at $53 billion, or $171 per share based on Chevron’s closing price on October 20, 2023. Under the terms of the agreement, Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. The transaction’s total enterprise value, including debt, is $60 billion. It should finally close this summer.

UBS has a Buy rating and a huge $197 target price.

Conagra Brands

Conagra Brands, Inc. is an American consumer packaged goods holding company that offers a safe investment with a stellar, dependable 7.45% dividend. Together with its subsidiaries, Conagra Brands, Inc. (NYSE: CAG) operates primarily in the United States as a consumer packaged goods food company.

The company operates through four segments:

• Grocery & Snacks
• Refrigerated & Frozen
• International
• Foodservice

The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.

The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.

The International segment offers food products in various temperature states through retail and food service channels outside the United States.

The food service segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.

The company sells its products under these well-known brands:

• Birds Eye
• Marie Callender’s
• Duncan Hines
• Healthy Choice
• Slim Jim
• Reddi-Wip
• Angie’s
• BOOMCHICKAPOP

Barclays has an Overweight rating for the shares with a $26 target price.

Dominion Energy

Dominion Energy is an American energy company headquartered in Richmond, Virginia, which pays a dependable 4.38% dividend. Many of the Wall Street firms we cover remain very optimistic about utilities despite the sharp move higher over the last year. Dominion Energy, Inc. (NYSE: D) operates through four segments:

• Dominion Energy Virginia
• Gas Distribution
• Dominion Energy South Carolina
• Contracted Assets

The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.

The Gas Distribution segment engages in

• Regulated natural gas gathering
• Transportation
• Distribution and sales activities
• Distributes nonregulated renewable natural gas

This segment serves residential, commercial, and industrial customers.

The Dominion Energy South Carolina segment generates, transmits, and distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.

The company’s portfolio of assets included approximately:

• 30.2 gigawatts of electric generating capacity
• 10,500 miles of electric transmission lines
• 85,600 miles of electric distribution lines
• 94,200 miles of gas distribution lines

Dominion serves approximately 7 million customers.

Wells Fargo has an Overweight rating with a $68 target.

Verizon

Verizon Communications Inc., commonly known as Verizon, is an American multinational telecommunications company that continues to offer tremendous value. It trades 9.13 times its estimated 2026 earnings, pays a 6.81% dividend, and is up almost 9% in 2025. Verizon Communications, Inc. (NYSE: VZ), through its subsidiaries, provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

Verizon’s trailing twelve-month interest coverage ratio is 4.6×- 5×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, the large scale helps in financing and absorbing shocks.

It operates in two segments:

• Verizon Consumer Group
• Verizon Business Group
• The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements.

It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches and other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic, Northeastern United States, and Washington, D.C., through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

Goldman Sachs has given the company a “Buy” rating and a price target of $49.

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