One month ago, it was all about an improving economy and jobs picture. Then the horrible May nonfarm payroll numbers came out, and quickly all bets were off. No June rate increase from the Federal Reserve, July looks out, and now one Fed governor says it’s possible there will only be one between now and 2018. Many Wall Street pros think the Federal Reserve is losing credibility with the markets. One thing seems very likely, rates are going nowhere.
Once again, income investors are the big losers as rates remain the lowest in over 50 years, and with many of the bond proxy stocks like utilities, real estate investment trusts (REITs) and master limited partnerships (MLPs) close to fully valued, the decision gets even harder. We screened the major indexes for higher yielding stocks that still have some upside potential. We found four that make good sense now: Frontier Communications Corp. (NASDAQ: FTR), GameStop Corp. (NYSE: GME), Geo Group Inc. (NYSE: GEO) and Iron Mountain Inc. (NYSE: IRM).
The Fed Has No Cred: Buy These 4 Big Dividend Stocks Now
No June rate increase from the Federal Reserve, July looks out, and now one Fed governor says it’s possible there will only be one between now and 2018.
Disclosure:
I am/we are long O. See a list of all my dividend growth holdings here.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
Comments
Log in or sign up to join the conversation.