Passively grow your portfolio with these ideas
Hardly a popular topic due to its wide-ranging implications,
rising fears of a recession are becoming much more pronounced. Primarily, the
benchmark equity indices are struggling for momentum, which is not a great sign
amid myriad political and economic pressure points. Further, governmental
action to address the concerns of Main Street may exacerbate the crisis. About
the only good news is that high-yield dividend stocks to buy may offer
investors a reprieve.
For one thing, the growth narrative that has guided the
arguably unloved bull market may have finally hit its peak. Even the
post-coronavirus pandemic storyline, which basically posited that unprecedented
fiscal and monetary support would drive up productivity, is becoming strained.
As evidence of this dynamic, former heavy hitters like Netflix (NASDAQ:NFLX)
have been forced to lay off workers. Under such a backdrop, dividend stocks
increasingly make more sense.
Mainly, companies that offer passive income are focused
(naturally) on profitability and sustainability, all other things being equal.
While such a framework is a far departure from the sexy super-growth stories
that analysts in less-complicated market cycles have delivered to their
clients, right now, dividend stocks theoretically present the most rational
investment. With the purchasing power of the dollar in rapid decline, investors
are focused on pain mitigation.
That’s not to say that passive income is a guaranteed bet —
far from it. However, with the turmoil in the global economy, investors ought
to consider pivoting some portion of their portfolios to high-yield dividend
stocks to buy.
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