According to the data, Verizon, UnitedHealth, Coca-Cola, McDonald’s and Walmart have been the best Dow performers during those periods of falling yields. These stocks tend to be winning bets during heightened market uncertainty since they all kick back big dividends and are relatively less impacted by economic weakness. Drug giants Pfizer and Merck are also leaders in the 30-stock Dow during times when yields are declining.
The 10-year yield has dropped around 25 basis points in May, and extended declines last week after survey data showed U.S. manufacturing activity tumbled to a more than nine-year low on trade war worries. Low rates may linger for a while as the trade tensions show no signs of easing.
