With Inflation Falling, 5 Red-Hot Dividend Blue Chips May Be the New Top Picks Now

Well, it only took a little over a year, and a massive increase in the federal funds rate, but the inflation that has dogged the American consumer since early 2021 is finally subsiding. With Tuesday’s inline to lower consumer price index data, it is likely the Federal Reserve will announce a pause in its rate hiking cycle on Wednesday. While on the surface that seems like a positive (and it is), the 4% year-over-year increase is still double the Fed’s target rate of 2%, and it is quite possible that another rate hike will come in July.

Given that the spiraling 9.1% inflation at this time last year has been more than cut in half, we decided to screen our 24/7 Wall St. research database for the companies that do better when inflation is falling. The following five top stocks hit our screens. All are rated Buy on Wall Street, pay shareholders dependable dividends and, most importantly, have a negative correlation to U.S. inflation and perform best when inflation trends lower.

It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.


While somewhat off the radar, this blue chip looks poised to trade much higher. Ball Corp. (NYSE: BLL) supplies aluminum packaging products for the beverage, personal care and household products industries in the United States, Brazil and elsewhere.

The company manufactures and sells aluminum beverage containers to fillers of carbonated soft drinks, beer, energy drinks and other beverages. It also develops spacecraft, sensors and instruments, radio frequency systems, and other technologies for the civil, commercial and national security aerospace markets, as well as offers defense hardware, antenna and video tactical solutions, civil and operational space hardware and systems engineering services.

In addition, the company designs, manufactures and tests satellites, remote sensors and ground station control hardware and software. It provides launch vehicle integration and satellite operational services. Further, it offers target identification, warning and attitude control systems and components; cryogenic systems and associated sensor cooling devices; star trackers; and fast-steering mirrors to the government agencies or their prime contractors.

Additionally, the company manufactures and sells extruded aluminum aerosol containers, reclosable aluminum bottles, aluminum cups and aluminum slugs.

Investors receive a 1.52% dividend. BofA Securities has a $65 target price on Ball stock. The consensus target is $60.41, and shares closed on Tuesday at $54.32.

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