The upcoming Liberation Day tariffs by Donald Trump will be the main catalyst for the stock market in April. These tariffs helped to tank the stock market in Q1, with the S&P 500 index falling by double digits during the quarter. This article explores some of the top tariff-proof S&P 500 index stocks to buy in April.
Waste Management (WM)
Waste Management stock price jumped by 14% in the first quarter, solidifying its position as one of the top defensive stocks in Wall Street.
The company, which offers waste management solutions in the US, is largely tariff-proof because people will always produce waste and pay for it.
It has a long history of doing well in difficult market conditions, including during the COVID-19 pandemic when its annual revenue jumped by about $2 billion in 2020 and 2021.
Analysts anticipate that Waste Management’s revenues will continue doing well this year. The average estimate is that its revenue will rise by 19% in Q1 to $6.14 billion, while its annual figure will rise by 16% to $25.6 billion.
This growth is mostly because of its Stericycle buyout, which gave it a bigger exposure to medical waste. On top of this. WM is a future dividend aristocrat that has paid and boosted dividends for over 21 years.
Berkshire Hathaway (BRK)
Warren Buffett’s Berkshire Hathaway stock price jumped by 18% in the first quarter, beating the S&P 500 index that slumped.
Berkshire was built for times like this. It is a diversified company that has been in business for decades. It owns some popular companies like BYD, DaVita, Occidental, Apple, American Express, Coca-Cola, and Moody’s.
Broadly, all these names will not be affected by Donald Trump’s tariffs. Indeed, some, like BYD, may benefit from the tariffs as sentiment on Tesla wane internationally.
Most importantly, Berkshire stands to benefit from a stock market crash because it has a large cash balance of over $300 billion. This cash means that the company will make opportunistic purchases if the stock market implodes because of these tariffs.
S&P Global (SPGI)
S&P Global is another tariff-proof S&P 500 stock to buy and hold. It is a top player in the financial services industry, where it offers credit ratings, data and analytics, indices, and other solutions.
All these businesses do well regardless of the market and economic situations. For example, its indices like the S&P 500 index continues to generate reliable income no matter what happens in the economy.
Additionally, its core ratings business operates largely as a duopoly, where it competes with other companies like Moody’s and Fitch. These are three companies that have become highly difficult to disrupt.
Altria (MO) and Philip Morris (PM)
Tobacco stocks like Altria and Philip Morris are other tariff-proof stocks to buy. They are ideal companies because smokers will always continue smoking regardless of the market conditions.
Further, the two companies will not be impacted by tariffs since they manufacture their products locally. They are also reliable dividend payers, with Altria and Philip Morris having dividend yields of 7% and 3.48%, respectively.
T-Mobile (TMUS)
Telecom stocks are also recession-proof players in the S&P 500 index. The TMUS stock price has already surged by 20% this year, beating other telecom companies like AT&T and Verizon.
T-Mobile beats these companies because of its better and more affordable services, and the fact that its revenue and profits are growing at a faster rate. Analysts expect that the TMUS revenue rose by 5.5% in Q1 to $20.68 billion, while its annual figure will be $85.6 billion.
Read more: Here’s why T-Mobile stock price keeps beating AT&T and Verizon
Other tariff-proof S&P 500 index stocks to buy
There are many other tariff-proof S&P 500 index to buy in April. Most of these companies are in defensive industries like healthcare, consumer staples, finance, and utilities. Some of the most notable companies are JPMorgan, Walmart, NextEra Energy, Dominion Energy, Chubb, and Johnson & Johnson.
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