7 Best Income Stocks to Buy for July 2021

 

Add some stability to your portfolio as the market appears stretched

 


In the age of meme trades and rampant speculation, income stocks don’t exactly get the juices flowing. Generally defined as equity units of publicly traded companies that feature consistent (and hopefully rising) dividend payouts, we should be honest and admit that this investment class isn’t exactly sexy. But it’s also one of the more important sectors to consider given the present context.

 

For one thing, income stocks provide a strong measure of stability. As you know, one of the hottest sectors over the trailing year has been cryptocurrencies. When things are going well, you’re on top of the world. When they’re not, you want to find the deepest hole so you can crawl into it. With companies that pay dividends, though, you can always rely on something even when the market doesn’t go your way.

 

Second, the biggest threat to the equities sector and the economy could be deflation, which would favor income stocks over growth names. Now, I understand the social media chatter that scream incredulity when this topic comes out. I look at it this way. If inflation was the paradigm-shifting threat that we should worry about, then how come the Dow Jones Industrial Average has been flat to negative since early May?

 

Even more telling, why is the gold price down during the same period? Surely, in an inflationary environment, hard assets of intrinsic value should soar to the moon. Even if we don’t have inflation now, just the concept of professional investors anticipating it — and by the way, seemingly everybody is talking about inflation — should result in higher gold prices. If anything, we’re seeing lower prices, which should make you think about income stocks.

 

 

And that’s the point. Nobody has a crystal ball on this stuff, so you don’t want to swing for the fences toward any one narrative. But when everyone bets on the same horse, the possibility of great disappointment rises. Therefore, here are some income stocks to consider:

 

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