Now is the time to seek safety in cheap dividend stocks
Investors should get rewarded for holding cheap dividend
stocks in 2023
In 2023, stock market uncertainties will worsen, rewarding
investors who seek cheap dividend stocks.
The bigger their discount to their fair value, the more
margin of safety the company offers. Companies that pay dividends prioritize
cash flow first. Management will allocate cash flow to shareholders, rewarding
them with a high dividend yield.
Finding cheap dividend stocks is critical for another
reason. By the time the Federal Reserve meets for the second time in 2023, the
central bank will set a Fed Funds rate of over 5%, that 5% still trails real
borrowing costs.
For example, mortgage rates and loans to small businesses
will exceed 6%. In addition, the consumer price index, which measures
inflation, is 7.1% year over year. Despite negative real returns, investors
should expect the Federal Reserve will achieve a long-term inflation rate of
2%.
Investors have these seven ridiculously cheap dividend
stocks to consider.
Comments
Post a Comment