4 Top High-Yield Dividend Stocks to Buy Now for Big Gains
The July 19th market flight is evidence for investors that the stock market can easily fall if it trades close to the record territory. Even if the stock market rallied for two days after losing on Monday, that doesn't necessarily mean that the volatility among stocks has ended this summer. Investors need to be careful, especially since the months of August and September are usually negative for the stock market.
LPL Financial's Chief Market Strategist Ryan Detrick also noted that the summer months are indeed ripe for a market decline, particularly due to weak seasonality factors. In addition, no one should ignore the effects of the COVID-19 delta variant. The more contagious variant of the coronavirus devastated the stock market as early as July 19, and if the outbreak isn't tackled quickly, it could once again dampen investor sentiment.
Investors were terrified on Monday at the rapid spike in coronavirus cases as the Delta variant becomes severe around the world. Without a doubt, it made the Dow's worst trading day since falling 943 points last October. However, the blue chip index could face such a sell-off again as the spread of the delta variant continues to jeopardize economic recovery around the world.
Needless to say, investors deep down fear another lockdown on companies and movements if the spread of the variant isn't curbed. The Delta variant has already affected heavily vaccinated places like the UK and places in the United States where vaccination rates are comparatively low.
Incidentally, inflation has already picked up, which is not a good sign for the stock market. This is because inflation drives bond yields up, making growth stocks less attractive. To put things in perspective, the index of consumer prices (CPI) rose 5.4% yoy last month, the highest 12-month increase since August 2008, when oil prices soared to $ 150, as in a. cited MarketWatch article.
The producer price index (PPI) was also hotter than expected in June. Citing a CNBC article, the PPI rose 7.3% yoy in June and rose 1% from May. In addition, the majority of investors currently expect inflation to rise in the short term. Citing another MarketWatch article, a recent survey by the UBS group showed that 57% of investors, particularly in the US, believe inflation will rise in the next 12 months.
But despite inflationary pressures and the proliferation of the delta variant, which is expected to cause turbulence in the stock market, investors shouldn't avoid stocks. Instead, they should bet on solid dividend players. These stocks are unmoved by market volatility thanks to their sustainable business model and longstanding profitability.
We have therefore highlighted four such stocks that have a Zacks # 1 (strong buy) or 2 (buy) rank and offer high returns.
Artisan Partners Asset Management Inc. APAM is an investment management firm focused on providing active, value-added investment strategies to its clients. The company is ranked # 2 in Zacks. It has a dividend yield of 7.2%, while the average dividend yield over five years is 8%. The company's expected earnings growth rate for the current year is 47.5%.
Compass Diversified Holdings CODI was formed to acquire and manage a group of medium-sized companies headquartered in North America. The company is ranked # 2 in Zacks. The dividend yield is 5.8%, while the average dividend yield over five years is 8.1%. The company's expected earnings growth rate for the current year is 60.4%.
Redwood Trust, Inc. RWT is a self-managed and self-managed real estate investment trust. The company is ranked # 2 in Zacks. It has a dividend yield of 6.2% while the average dividend yield over five years is 8.1%. The company's expected earnings growth rate for the current year is 2.825%.
Plains Group Holdings, L.P. PAGP is a holding company. The company, through its subsidiaries, deals with the transportation, storage and marketing of crude oil and refined products. The company is ranked # 1 in Zacks. It has a dividend yield of 7% while the average dividend yield over five years is 7.4%. The company's expected earnings growth rate for the current year is 130.3%. You can check out the full list of current Zacks # 1 Rank stocks here.
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Redwood Trust, Inc. (RWT): Free Stock Research Report
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