March 8, 2018

10 High-Dividend Stocks to Buy When the Market Is Blue


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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