These dividend stocks not only throw off yield, but keep risk at bay as well
I like to scan over the universe of dividend stocks at the beginning of each year. I try to suss out which dividend stocks not only offer a healthy dividend greater than 4%, but might also be undervalued. That creates a list of dividend stocks to buy that may not only offer income, but offer safety and even nice upside as well.
The list of dividend stocks to buy is quickly narrowed, however, by the fact that the overall market is about 20% overvalued. So your typical blue-chip stocks that allegedly represent both income and safety, in my opinion, offer nothing of the kind.
One of the biggest misleads in the market is that you can invest in some legacy Big Pharma or consumer name that pays a 3% yield and things will be just fine. Making 3% is little consolation when one loses 20% in a correction.
Instead, we’re looking at a trio of investments that not only yields between 4% and 10%, but that should provide more safety than most other stocks throughout the rest of the year.