Buy these cheap stocks with high cash levels as new Trump tariffs loom, UBS says

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Some stocks may provide a hedge against the risks associated with President-elect Donald Trump's plans for tariffs, according to the bank.

President-elect Donald Trump's tariff plans could weigh on the broader stock market, but some attractively valued names with strong cash levels could withstand the pressure, according to UBS. "U.S. equities have rallied with renewed momentum into and since the elections on expectations that a Trump presidency will see through large corporate tax cuts and company-friendly deregulation," analyst Michel Lerner said to clients Thursday.

These stocks also have dividend yields of more than 2%, offering a hedge to investors. Below are some stocks that made UBS' screen. Payroll processing company Paychex turned up on UBS' list. Shares are having a relatively strong year, up roughly 21% in 2024. The stock has a dividend yield of 2.7%. Bank of America recently highlighted Paychex in a report, noting that lower tax rates on corporations would be a "tailwind" for the stock.

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