The author suggests that investors should be selective and not buy the entire market at once via well-known ETFs due to the rapid growth of interest rates, leading to the need for more selective investment choices and potential challenges for companies in sustaining profit margins and dealing with higher debt burdens.
Dividend stocks have a track record of outperforming non-dividend paying stocks, and investors can generate $100 in monthly dividend income by investing in AGNC Investment, PennantPark Floating Rate Capital, and Realty Income.
Visa Inc., a powerful dividend growth stock, has consistently raised its dividend by 17% annually and boasts 14 consecutive years of uninterrupted dividend growth, making it a standout player in the world of dividend growth stocks. Additionally, Visa's financial strength, robust performance, and attractive valuation position it as a promising investment opportunity for long-term investors.
In this article, the author mentions several stocks including:
1. Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI)
2. Via Renewables preferred shares (VIASP)
3. NXG NextGen Infrastructure Income fund (NXG)
4. OFS Credit Company, Inc. (OCCI)
The author does not explicitly give a recommendation to buy, hold, or sell these stocks. However, they mention that they have a 5% position in USOI and do not plan to increase their holding unless oil prices dip below $80 again.
The author's core thesis is to hold high-yielding securities that offer regular monthly or quarterly dividends to grow their future income stream. They mention that they are accumulating wealth in their investment portfolio and reinvesting dividends to compound their income.
The key information and data in the article include the current TTM yield of USOI at about 27%, the high yield provided by VIASP (approximately 26% at the time of the article), the doubled dividend of NXG NextGen Infrastructure Income fund, and the high yield and potential price appreciation of OFS Credit Company, Inc.
The crypto fund management business could see assets of up to $650 billion in five years due to the expected launch of spot-based bitcoin ETFs, according to a research report by broker Bernstein.
Three dividend stocks worth considering now are American Electric Power (AEP), Dominion Energy (D), and RTX, as they offer steady dividend payments, lower volatility, and attractive yields, making them suitable choices for passive income and capital preservation during a bear market.
Investors may want to consider increasing exposure to dividend stocks, such as those in the S&P Dividend Aristocrats, as rising long-term interest rates have the potential to push the broad stock market down again.
Investing in dividend stocks has historically provided higher returns than stocks that don't pay dividends, and three high-yield stocks with sustained payouts that can generate $500 in annual dividend income from a $5,400 investment include AT&T, PennantPark Floating Rate Capital, and Innovative Industrial Properties.
Summary: Morgan Stanley recommends investors turn to dividend-paying stocks, as they have historically outperformed non-dividend stocks during market downturns. They have identified 26 dividend stocks that could see shares rise up to 85% in the coming months.
Investor inflows into AI-focused exchange-traded funds (ETFs) have slowed down due to concerns over high U.S. interest rates and market volatility, but long-term prospects for the sector remain optimistic.
The launch of nine new Ethereum futures exchange-traded funds (ETFs) saw underwhelming trading volume of less than $2 million on the first day, with none of the products standing out as a clear winner, indicating that investors may prefer spot ETF products over futures.
Dividend stocks are a good option for investors seeking stable income or a hedge against inflation, but it's important to choose stocks with above-market dividend yields and strong dividend growth rates for optimal capital appreciation and income generation.
Investors may be overlooking the potential of dividend stocks due to the current high yields on cash and bonds, but long-term investors have an opportunity to benefit from growth and income with quality dividend stocks that have the potential to raise their dividend payouts over time.
