‘It Could Get Worse Before It Gets Better’: Carl Icahn Uses These 2 Dividend Stocks to Protect His Portfolio

The bad news, according to billionaire investor Carl Icahn, is that things could still get worse from here. “I think a lot of things are cheap, and they’re going to get cheaper,” said Icahn, pointing to the economic malaise, and laying the blame squarely at the Fed’s feet, whose years-long fast and easy monetary policy Icahn see as the main reason behind 2022’s rampant inflation. With this in mind, let’s take a look at a pair of dividend stocks which form part of the activist investor’s portfolio; Both stocks significantly outperformed the market this year -- highlighting their defensive strength in the current bearish environment.

We’ll kick off with FirstEnergy (FE), an electric utility whose ten operating companies make up one of the country’s biggest investor-owned electric systems. The company provides electricity to millions of clients in the Midwest and Mid-Atlantic regions – all the way from the Ohio-Indiana border to the New Jersey shore. For the next stock, will cross country to Southwest Gas (SWX), a Las Vegas, Nevada-based energy infrastructure holding company. As part of Its regulated operations, the company provides natural gas, and boasts more than 2 million residential, commercial, and industrial clients in Nevada, Arizona, and California. The company also owns MountainWest Pipelines, an owner of 2,000 miles of interstate natural gas transmission pipelines.

Source: NASDAQ

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