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Verizon, General Electric, And Exxon: 3 Dow Laggards to Bet On

Investors in technology stocks, particularly FANG names like Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google (GOOGL), which have crushed the market in the first half of the year, while accounting the lion-share of the S&P 500’s gains, have made tons of money. But it’s clear that a sector rotation is emerging.

Portfolio managers have begun to shift out of tech and semiconductors to re-allocate capital in underperforming areas they believe can thrive in the next six to twelve months. While I believe the recent decline in techs have been exaggerated, it would be a mistake to fight the market and ignore the trend.

As such, investors who are looking for potential bounce back candidates in the second half of the year should use the sector rotation period to diversify their holdings until the tide recedes.

In this vein, I present three Dow first-half dogs in three different sectors — Verizon, General Electric and Exxon — that not only present considerable return potential, they also offer great degree of safety from the standpoint of their generous dividends.

Verizon (VZ) - Down 16% — Year-End Target $50 — Dividend Yield 5.13%

Increasing competition in the wireless industry from the likes of T-Mobile (TMUS) and Sprint (S), combined with what some analysts are calling worldwide saturation, has pressured Verizon’s business. But with VZ stock trading some 21% below its 52-week high of $56.33, the company is priced on the assumption that it won’t grow at all...