As geopolitics and broader economic concerns weigh on Wall Street, dividend stocks offer both upside potential and passive income
The markets have finally appeared to reassert themselves
after suffering several months of wild choppiness. But even with this newfound
bullishness, I’m angling for dividend stocks to buy. These aren’t merely empty
words, as I’ll demonstrate later in this article.
This summer, my InvestorPlace colleague Vince Martin wrote
an excellent piece detailing the nitty-gritty of dividend stocks, including why
you want to buy them, what nuances to look out for and real-world examples of
various income-paying companies. Before you dive into this sector, I highly
recommend learning from Martin’s expertise.
Along with his factors for purchasing dividend stocks, I
believe this present juncture provides enormous justification. With an
income-bearing asset, you’re not entirely dependent on market performance for
shareholder profitability. This is important because this optimism is largely a
bull on paper. After all, the Dow Jones Industrial Average is only up 4.5%
year-to-date.
Additionally, the markets must absorb significant
ambiguities. President Trump and his policies cut multiple controversial lines.
Agree or disagree, we have consensus that investors prefer predictability over
uncertainty. With Trump, both supports and opponents don’t know what they’re
going to get.
If it’s uncomfortable on Capitol Hill, it’s at least doubly
so on Wall Street.
Again, this is the reason why I’m bullish on dividend stocks
to buy. If things go well, you have the potential for capital returns and
passive income. If the markets take an unexpectedly negative turn, dividend-paying
companies tend to ride out bearish cycles better than less-generous
organizations.
With this in mind, here are my ideas for dividend stocks to
buy, ranging from safer options to speculative bets:
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