Markets snapped back on Tuesday following two days of cratering after news hit that the Brexit referendum actually passed. But it wasn't enough to reverse the stormy declines seen in most U.S. stocks since the announcement was made late last week. Even stocks with strong fundamental stories and high dividend yields were tossed in the market turmoil as investors ran for the hills.
While market volatility will likely linger as the world adjusts to the U.K.'s decision to leave the European Union, consider weathering the Brexit storm with Drexel Hamilton's 17 best stock ideas for investors. The stocks are all rated buy by the investment firm and have dividend yields of 3% or higher.
Each entry on the following list includes the stock's three-day percentage change (of the 17, only AT&T (T) - Get Report and Regal Entertainment (RGC) have had positive three-day returns), Drexel's price target and a snippet of the bank's investment thesis associated with each stock.
![Three-Day Change: -3.8% Drexel Hamilton Price Target: $64 Market Cap: $234 billion Dividend Yield: 3.33%"Our target price of $64 represents about 15 times our 2016 EPS estimate of $4.22, a premium valuation to the average for peer banks that we believe is justified by [Wells Fargo's ] lower risk profile and historically lower volatility of returns," wrote analyst David Hilder. "Although low interest rates and slow economic growth have made it tough for most large banks to produce significant earnings growth, and WFC by law can't buy healthy commercial banks, WFC did add $47 billion in assets over the last several quarters by buying various commercial finance businesses from General Electric Co. as part of the wind-down of GE Capital. We view this as a creative and opportunistic growth strategy that shows WFC's deep understanding of various commercial finance segments such as railcar and equipment leasing and its own regulatory situation."Wells Fargo is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Cramer and Jack Mohr, Action Alerts Research Director, wrote in a recent weekly commentary:Wells Fargo is largely domestic and is less sensitive to a rate hike given that it has prepared its business for a lower-for-longer environment. The bank derives almost half its revenues from a fee-based business, which is less susceptible to the risks of a low-rate environment (as the revenue comes in for that business regardless of net interest margins). As for the recent stress test released by the Fed, Wells also passed, although it did not improve to the extent that Citi did. This is most likely because WFC relies more on consumer deposits for funding and therefore could have been hurt more by the potential (extreme) negative interest rate scenario portion of the test as the Fed assumes that banks could not pass along negative rates to consumers. We will be watching the CCAR result announcement next week for a further update on WFC's regulatory standing. ](https://www.thestreet.com/.image/c_fill%2Ccs_srgb%2Cg_face%2Ch_80%2Cq_auto:good%2Cw_80/MTY4NjQ4MTU5NjUzOTMwNjMx/wells-fargo.png)
