Blue-chip stocks are some of the safest bets on the market. But you already knew that. These companies have stood the test of time, in good times and in bad. They’re the best of the best, proving to have dependable business models, a proven track record, and a strong reputation. They also have a history of delivering strong returns, with dividends to boot. Even better, most will never go out of business because they offer products and services that billions of us depend on. Sometimes, you’ll even spot big opportunities to buy on the cheap, including these top blue-chip stocks under $20 for June.
With a yield of 7.06%, AT&T (NYSE:T) is exceptionally oversold and showing signs of life at $15.73. It’s even over-extended on RSI, MACD, and Williams’ %R. The last two times the stock became this oversold, it came back strong. In Oct., it bounced from $14 to $20. In December 2021, it bounced from about $15.73 to a high of $20. I’d like to see it happen again now.
We also have to consider the company is well-positioned to capitalize on 5G and the rising demand for high-speed Internet and streaming content. Helping, over the last few weeks, JPMorgan said, “We would be buying here,” as quoted by Barron’s. The firm also reiterated its overweight rating with a price target of $22 a share.
Also, late last week, AT&T was clobbered on news Amazon (NASDAQ:AMZN) was in talks to offer low-cost, or even free nationwide phone service to its US prime members. However, according to Amazon, T-Mobile (NASDAQ:TMUS), and Verizon (NYSE:VZ), that’s not happening. In fact, Amazon told Barron’s they “don’t have plans to add wireless at this time.”
Barrick Gold (GOLD)
Or, take a look at Barrick Gold (NYSE:GOLD). At less than $17, with a yield of 2.38%, it’s another top, oversold blue-chip to own.
After plummeting, the gold stock also became wildly oversold. RSI, MACD, and Williams’ %R are also deep in oversold territory. The last time this stock became this technically oversold, it ran from a low of about $15.50 to just over $20.50. Even global central banks are racing to buy gold. In the first quarter, they bought 228t of gold – 34% higher than the previous record set in 2013, according to the World Gold Council. That also follows annual demand of 1,078t in 2022. Also, analysts at UBS believe gold prices could hit $2,100 by year-end; $2,200 by March 2024.
In addition, rising U.S. recession risks can easily prompt further safe-haven gold buying. And we also have to consider that high inflation is still persistent. Better, according to CEO Mark Bristow, “There’s significant upside risk for the gold price and the copper price” because of tightening supply for both and the shift by central banks to diversify their reserves by holding gold in place of the dollar, he told the Financial Times.
We can collect its yield while we wait for gold stocks like Barrick Gold to recover.
Kinder Morgan (KMI)
Even Kinder Morgan (NYSE:KMI) is oversold. With a yield of 7.01%, the stock now sits at solid support at $16.11. It’s also over-extended on RSI, MACD, and Williams’ %R. And it also has a history of bouncing back nicely from where it is now.
We also have to consider that Kinder Morgan is one of the largest infrastructure companies in North America. It owns and controls oil and gas pipelines and terminals. The company also remains one of the most stable, with enough cash to cover its dividend. Even better, with its stable and rising cash flows, it shouldn’t have any problem with strong dividend growth. Also, much like the rest of the energy sector, it’s starting to pivot toward lower carbon energy sources, which could provide it with solid growth opportunities.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.