7 Healthy Dividend Stocks to Buy for Extra Stability

Euphoria has rushed back into the stock market, and that means now is a good time to buy dividend stocks

The stock market is on fire right now. Year-to-date, the S&P 500 is up 11%, and it isn’t even March yet. Further, the S&P 500 is up nearly 20% from its Christmas Eve lows and it is now just 5% off all-time highs.

While I’ve been bullish on this 2019 stock market turnaround for some time now, I also realize that there are still risks out there which could subdue the current rally in stocks. U.S. and China trade talks are progressing, but there’s no resolution yet. The global economy remains healthy, but it is slowing. Consumer confidence remains high, but it is dipping. Earnings remain strong, but costs are rising, margins are dropping and earnings growth is slowing.

Overall, the current economic backdrop for stocks is bullish, but it has risks. Right now, with the S&P 500 trading at a very normal 16.3 forward earnings, valuations seem to reflect reality. Thus, the outlook for continued gradual gains is healthy. But, a repeat of January and February 10%-plus rally is unlikely.

With stocks set to slow, now is a good time to start buying into dividend stocks. These stocks tend to outperform when the broader stock market slows since they are seen as protection from volatility. Further, dividend stocks could get a nice boost in 2019 if the Fed remains cautious, doesn’t hike, and rates largely remain low.

Overall, now seems like a good time to add some stability to the portfolio through dividend stocks. With that in mind, here’s a list of seven healthy dividend stocks to buy in 2019.

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