Buy 5 Top High-Yielding Stocks Amid Virus-Induced Turmoil

Wall Street has been rattled by severe volatility in the last two weeks as the coronavirus outbreak is showing no signs of letting up. With market participants unable to estimate the extent and impact of the coronavirus outbreak have commenced, selling off risky assets like equities out of panic.

At this juncture, it will be prudent to invest in high dividend (more than 5%) paying stocks with a favorable Zacks Rank to cushion your portfolio from day-to-day market fluctuations.

Market Mayhem Continues  

Wall Street’s downward movement, which commenced in the last week of February, is persisting in the first week of March as well. In the first four trading days of this month, all three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — moved 3% or more in either direction every day. At present, all these indexes are in the negative territory year to date, with a loss of 8.5%, 6.4% and 2.6%, respectively.

Meanwhile, investors are aggressively shifting their funds from risky equities to safe-haven assets such as U.S. government bonds and precious metals like gold. As a result of massive fund shifting, prices of government bonds with different maturities have skyrocketed resulting in plunging yields. Moreover, gold prices have skyrocketed.

Preventive Measures Fail to Deliver

Several governments, central banks and global economic agencies have taken a slew of pre-emptive measures to minimize the impact of coronavirus on the economy and stock markets. However, markets are yet to stabilize and make northbound movement.

The Bank of Canada has lowered benchmark interest rate by half a percentage point to 1.25%. The Reserve Bank of Australia reduced cash rate by 25 basis-points to a new low of 0.5%. The Bank of Japan boosted investor confidence with announcement that it would provide "ample liquidity" to keep financial markets stable.

Moreover, the International Monetary Fund and the World Bank have decided to release $50 billion and $12 billion, respectively, as aid packages for coronavirus-affected countries in order to revive global economic growth.

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