Safe dividend stocks will most likely be your best bets to beat the market this year. Facing a profit recession, stalling global demand, and falling margins, stocks that pay hefty dividends and have some upside potential should be the only stocks you’re buying right now.
Goldman Sachs came out this week and stated it saw little upside for the overall market during the next 12 months. This confirms the same view I have articulated on these pages since the back half of 2015. The overall market sells at a bit over historical valuations which would be fine if we were seeing decent growth both from an economic and earnings perspective. Unfortunately, that growth has not materialized at the present moment.
Global demand sits at levels not seen since 2009, and both the European and Japanese central banks are experimenting with negative interest rate policies to ignite growth and with little result so far. Domestically, GDP posted just a .5% reading in the first quarter. Although, growth should pick up in coming quarters; we are still looking at below trend growth in what continues to be the bleakest post-war recovery recorded here in the United States.
So, what looks like some good picks in the market right now?...
Source: Investors Alley