Will The Tariff “Taco Trade” End The Rally? 5 High-Yield Value Stocks Are Strong Buys Now
- - - Will The Tariff “Taco Trade” End The Rally? 5 High-Yield Value Stocks Are Strong Buys Now
Lee JacksonJuly 8, 2025 at 3:35 AM
Value stocks are generally companies that trade at a price lower than their fundamental value or what their performance suggests they should be worth. Typically, these are shares of a company with solid fundamentals that are priced below those of its peers, based on an analysis of the price-to-earnings ratio, yield, price-to-book value, and other relevant factors. Value stocks are often overlooked by the market or undervalued due to factors such as market volatility, economic downturns, or negative news surrounding the company, which may be temporary in nature. Value stocks could be the best move now, with the potential for a "Taco Trade" tariff-driven market meltdown.
24/7 Wall St. Key Points: -
The "Taco Trade" stands for Trump Always Chickens Out or TACO
When this is applied to the Tariff policy of the U.S., it adds another layer of volatility to the market
After a massive run off the market lows in April, we could be poised for a 10% or bigger retracement
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One of Wall Street's top quant strategists and one of 24/7 Wall St.'s favorite writers, Harry Colt, believes that the reason there is a degree of anxiety over the "Taco Trade" and the current situation with tariffs is that the President often sets hard and fast deadlines. Then, as they approach, they are frequently moved as they were three months ago when the President granted a 90-day extension for tariff negotiations. With a July 9th deadline for tariff negotiations to be completed and rumors circulating about whether deals have been completed or not, the problem for Wall Street is the one issue it always despises: the unknown and more uncertainty.
The reality is that with the country employing the most aggressive trade policy since 1930, following the Smoot-Hawley Act, and investors stuck with more questions than answers, we may be headed back to a 1970s Stagflation environment, characterized by a slowing or stagnant economy with persistent, sticky inflation. Now is the time to capitalize on technology profits and shift to high-yield value leaders. We have five that are Buy-rated and tremendous values now.
Why do we cover Value dividend stocks?
Value dividend stocks offer investors a reliable source of passive income from stocks that are overvalued and undervalued. 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.
Chevron
Chevron Corporation is an American multinational energy corporation specializing in oil and gas. This integrated giant is a safer option for investors looking to position themselves in the energy sector and pays a rich dividend. Chevron Corporation (NYSE: CVX) operates integrated energy and chemicals businesses 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
Transportation, storage, and 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 advanced 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
Chevron 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, and it is expected to close this summer.
Conagra Brands
Conagra manufactures and sells products under various brands in supermarkets, restaurants, and foodservice establishments. This is the ideal company for nervous investors, as it pays shareholders a substantial and secure dividend. Conagra Brands, Inc. (NYSE: CAG) and its subsidiaries operate primarily as a consumer packaged goods food company in the United States.
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 familiar brands:
Birds Eye
Marie Callender's
Duncan Hines
Healthy Choice
Slim Jim
Reddi-Wip
Angie's
Eversource Energy
Eversource is an energy provider serving customers in the Northeast part of the United States and posted strong first-quarter earnings. This conservative stock idea is off the radar and pays a rich dividend. Eversource Energy (NYSE: ES) is a public utility holding company that delivers energy to its customers.
The company operates through four segments:
Electric Distribution
Electric Transmission
Natural Gas Distribution
Water Distribution segments
It is involved in transmitting and distributing electricity, as well as operating solar power facilities and natural gas facilities.
The company operates regulated water utilities that provide water services to approximately 241,000 customers. It serves residential, commercial, industrial, municipal, and fire protection customers in Connecticut, Massachusetts, and New Hampshire.
LyondellBasell
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LyondellBasell is a global leader in developing and supplying materials that enable packaging, health, and transportation solutions. This blue-chip chemical giant offers a long history of strong performance. LyondellBasell Industries N.V. (NYSE: LYB) operates as a chemical company in:
the United States
Germany
Mexico
Italy
Poland
France
Japan
China
the Netherlands
Internationally
The company operates in six segments:
Olefins and Polyolefins-Americas
Olefins and Polyolefins-Europe, Asia, International
Intermediates and Derivatives
Advanced Polymer Solutions
Refining Technology
It produces and markets olefins and co-products, including polyethylene and polypropylene, propylene oxide and its derivatives, oxyfuels and related products, as well as intermediate chemicals such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.
In addition, the company produces and markets compounding and solutions, including:
Polypropylene compounds
Engineered plastics, masterbatches
Engineered composites, colors, and powders
Advanced polymers, including catalloy and polybutene-1
Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates
Furthermore, it develops and licenses chemical and polyolefin process technologies, manufactures and sells polyolefin catalysts, and serves applications in food packaging, home furnishings, automotive components, and paints and coatings.
Wells Fargo has an Outperform rating with a $85 target price objective.
Pfizer
Pfizer was established in 1849 in New York by two German entrepreneurs. This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes, but has been crushed over the last two years as many people have not received boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It pays a dependable dividend, which has risen yearly for the last 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
Cardiovascular, metabolic, and women's health under the Premarin family and Eliquis brands
Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands.
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
Pneumococcal disease, meningococcal disease, and tick-borne encephalitis
COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Pfizer anticipates full-year 2025 revenues in the range of $61.0 to $64.0 billion. This includes the expectation that revenues from COVID-19 products in 2025 will be broadly consistent with those in 2024, after excluding approximately $1.2 billion of non-recurring revenue for Paxlovid in 2024.
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Source: AOL Money
