Dividend-Paying Stocks Are Still Buys

The next major move in interest rates will be up, which will give you an instant capital loss in your bond portfolios. So going from there, we ask, “Okay, what kind of stocks do we want?” Well, we want stocks that have strong earnings patterns, balance sheets that are healthy and a management that believes in sharing the prosperity of the company, with a rising stream of dividends.

Another idea is to look for companies that are widely diversified, with strong managements. A good growth stock, a good growth company in that camp is Honeywell (NYSE:HON). It sells around $62. It’s involved in aerospace parts and also construction. I think construction will pick up as one of the big areas of activity that is way down. Also the management has a dividend growth strategy.

Source: Forbes

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