Income investors might not have been as comfortable as usual for much of the last decade. Thanks to the Federal Reserve quintupling its balance sheet since the financial crisis as well as other extraordinary measures taken by the central bank, interest rates remain near historical lows, even seven years after the economic “recovery” began in June of 2009. This is a key reason traditional dividend sectors like Consumer Staples and Utilities are selling at stretched valuation levels based on historical averages. To me, these are two of the most dangerous areas of the current market to be invested in, although both sectors are usually thought of as “low beta” (low volatility) within equities.
Desperate income seekers are paying north of 20 times earnings for entities showing little in the way of earnings or revenue growth, and only to capture a three percent yield. I am avoiding both sectors completely within my own portfolio. When the day of reckoning comes, it will not be pretty for holders of these sectors. I think income investors need to think outside of the box and explore other opportune areas to earn yield within the equity market. Here are the stocks that I invest in for dividends within my own portfolio: General Motors Company (GM), Ford Motor Company (F), Chatham Lodging Trust (CLDT), Hersha Hospitality Trust (HT) and AbbVie Inc (ABBV).
Source: InvestorPlace
Related Articles:
- Warren Buffett's Secret To 50% Returns
- 7 Undervalued, Big-Name Stocks To Consider For Your Dividend Portfolio
- 7 High-Yield Energy Stocks Growing Their Dividends
- 5 Dividend Stocks In Need Of A Market Correction
- 10 Dividend Stocks Building A Growing Cash Stream
5 Deeply Undervalued Stocks with Great Dividends
Posted by D4L | Thursday, November 10, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.