Yahoo Finance highlights Microsoft, Becton Dickinson and Clorox as value plays after market pullback
A recent report from Yahoo Finance, originally published by The Motley Fool, identifies three established companies with attractive forward price-to-earnings ratios and strong dividend histories following recent share price declines.
Yahoo Finance published an analysis on 29 May 2026 recommending Microsoft, Becton Dickinson and Clorox as attractive blue-chip investments in the wake of a broader market pullback. The article, sourced from The Motley Fool, argues that these companies provide a combination of stability, growth potential and income, with valuations that have become more appealing due to recent price declines.
Microsoft shares have fallen approximately 12 per cent in 2026, bringing its forward price-to-earnings ratio down to 22, well below its five-year average of around 30. The publication notes this is the stock’s cheapest valuation since 2019. While some investors have questioned the returns on the company’s artificial intelligence capital expenditures, which have more than doubled over the trailing 12 months compared to two years ago, the report highlights Microsoft’s diversified business model and a growing dividend that recently yielded 0.9 per cent.
Becton Dickinson, a leader in medical supplies and diagnostic products, is cited for its strong shareholder returns and innovation pipeline. The company launched more than 125 new products in 2025 and added $1.3 billion through acquisitions. With a forward P/E ratio of 11.7, below its five-year average of under 17, the stock offers a dividend yield of 2.8 per cent and has increased payouts for over 50 consecutive years. Total shareholder yield, including buybacks, stands at approximately 9 per cent.
Clorox shares have dropped more than 25 per cent over the past year, resulting in a forward P/E ratio of 13, significantly lower than its five-year average of 24. The company’s dividend yield has risen to 5.1 per cent, with total shareholder yield reaching around 8 per cent after buybacks. Despite rising oil prices expected to reduce quarterly gross profit by more than $20 million, CEO Linda Rendle stated that consumer demand remains resilient, with no significant shift to private-label brands observed in recent quarters.
The analysis positions these three stocks as potential anchors for long-term portfolios seeking to balance growth with income. The report suggests that while these companies may not offer the rapid growth of speculative assets, their established market positions and current discounted valuations make them compelling options for investors looking to mitigate volatility during market downturns.
