Fall has started here in Bumpass, Virginia with the corn crop being harvested (what's left of it after Hurricane Irene). The schools have restarted in trailers after the earthquake, and the weather has cooled down. Just when things were looking up, the stock market has tanked on the Federal Reserve's assessment of the economy. What should the potential retiree do now? My answer is “stay the course” by implementing the income stream reinvestment program using dividend growth stocks, diversified by Sector.
During the present market turmoil, preservation of capital is paramount. The above dividend growth stocks provide a high enough yield to place a floor under the stock price. The companies have long enough histories of earnings growth to weather this downdraft, in my opinion. The chart below (click to enlarge) comparing these three stocks over the last 5 years shows the cyclical nature of all three stocks.
Source: Seeking Alpha
Related Articles:
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
- 9 Stocks With a Sustainable Dividend
- 11 Low Beta, High Quality Dividend Stocks
- Five Dividend Stocks To Buy On A Dip
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