These Charts Reveal My Favorite Stocks to Buy Right Now
It’s Friday and you know what that means… it’s time to go to the charts!
You’ll recall at the end of each week, I put the pen down and instead let some graphics do the talking.
After all, a picture is worth a thousand words. And in this case, it tells a very compelling story to buy one investment in particular.
So let’s get to it…
Hungry for Yield?
Right now, 10-year U.S. Treasuries yield an embarrassingly low 2.13%. But thanks to the recent market volatility, high-quality, dividend-paying stocks are yielding much more.
In fact, as I revealed on Tuesday, yields for some safe, blue-chip stocks, like Telefonica (NYSE: TEF), are pushing into the double-digits.
We shouldn’t let the opportunity to scoop up these stocks pass us by. Why? Because dividends actually account for the majority of stock market returns.
As you can see, dividends account for roughly 90% of total stock market returns over the long term.
Of course, most investors foolishly believe that stock market riches are minted via capital appreciation. But that’s clearly not the case.
Even in the go-go days for stock prices, from 1982 to 2000, dividends still accounted for about 30% of total return. Indeed, their importance can’t be overlooked.
Before you rush out to load up your portfolio on dividend stocks, keep this in mind – any old dividend-paying stocks won’t cut it.
As this chart reveals, which I’ve shared before, companies that consistently increase their dividends are the best performers by a country mile.
So get reacquainted with my previous article, “A Seven-Step System to Finding the Safest High-Yield Stocks in Any Market” and load up on some dividend growers.
With 10-Year U.S. Treasuries yielding a pittance, and stock market volatility pushing prices of dividend-paying stocks lower, there hasn’t been a better time to buy such high-yielding stocks in a while. And the opportunity won’t last forever.
That’s all for this week. But before you sign off, do me a favor. Let me know what you think about this column or any of our work at Wall Street Daily. All you have to do is send an email to feedback@wallstreetdaily.com or post a comment below.
Thanks and enjoy the weekend!
Ahead of the tape,
Louis Basenese
Related Topics: Stocks, Think Contrarian
I`m always looking for stocks & funds that provide higher returns, with low risks
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I have been looking for a dividend stock that is FDIC protected and there was one FDIC TRUST investing in precious metals and have not seen it again. I lost heavily in the 1980 s recession and am afraid to invest any more. Thank You for your input on dividend stocks . vern
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I have two IRAs. One is managed,(I sometimes micromanage) The inv. conceler and I kind of work together to make decisions and he does do a good job for me. But it is not growing the way I want. This is the largr\est of the two so I’m trying to move funds in here to more steady income and not as much trading as I have to contact him to trade. The second I push the buttons myself so I’m always looking for sensable good buys. What little I’ve read this letter,I like as you get to the point. Well see if your right though. THX
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