Growing uncertainty for a market rally repeat makes dividend stocks extremely attractive
President Donald Trump ran on a ticket of making America
great again. While the consensus on that point is very much split, what’s not
deniable is the markets’ response. Trump’s pro-business agenda was credited for
sparking an impressive rally. With enthusiasm overshooting rationality,
however, high-dividend stocks are suddenly looking very attractive to
investors.
At first glance, nothing seems out of the ordinary. All major
blue-chip indices are up significantly on a year-to-date basis. However, over
the past few days, uncharacteristic volatility has shaken investors. Although
the actual magnitude of the declines has been minor relative to the overall
rally, the red ink suggests that the much-feared correction could be around the
corner.
After all, no rally lasts forever. But it’s not just the
market’s gravitational laws that have discerning investors spooked. Throughout
President Trump’s administration, the U.S. dollar index has veritably tanked,
losing nearly 12% since his inauguration. This implies that inflation, not
fundamentals, contributed significantly to recent economic gains. That has
several people turning to high-paying dividend stocks to buy.
Another powerful indicator is gold. Commonly considered a
“fear indicator,” gold enjoyed a quiet rally in 2017, gaining nearly 14%. But
much of those profits came in recent months, and in the year-to-date, the metal
is up 2.6%.
The resultant inflation exerts pressure on American
consumers, which could hurt overall economic enthusiasm. In addition, raging
debates on how the U.S. Federal Reserve will handle these challenges create
substantial uncertainties. This circumstance only bolsters the case for these
high-dividend stocks.
Trying to time and predict the markets’ every twist and turn
is a virtually impossible endeavor. A smarter, less stressful strategy is to
buy dividend stocks, which provide a payout despite the noise.
Here are the 10 best high-dividend stocks to buy when the
market is blue.
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