2 High-Yield Stocks For The Next Phase Of The Market

It’s time to start looking toward a post-coronavirus market and economy. And these two high-yield stocks are well-positioned for the coming recovery.

It’s been a wild ride in the market. A 34% crash in record time involved a lot of indiscriminate selling—just about everything got crushed. Then, an epic 20%-plus rally from the lows lifted almost every stock. Now, we are entering a different phase.

From here on, stock performance is likely to be a lot more company-specific rather than mostly a consequence of the market whirlwind. The coronavirus and adjoining economic shutdown are affecting companies very differently.

Some companies are facing massive disruptions. Airlines and cruise lines, as well as many retailers and energy companies, are taking a huge financial hit. Some companies won’t survive this and many of the survivors will take a long time to overcome the impact. On the other hand, certain companies are barely affected by the shutdown, and others are actually thriving.

For example, business at Amazon (AMZN) is booming as people stuck at home have to shop online. Companies like AT&T (T) and Verizon (VZ) as well as Netflix (NFLX) are thriving as people use the internet and watch TV more while locked up in their homes. Healthcare companies and Utilities continue to do business as people still take their medicine and heat their homes.

Markets always look forward. The panic and uncertainty surrounding the track of the virus is quickly passing. The next market phase is likely to be all about the economic impact of the shutdown and the recovery. Companies that can endure and thrive through the rest of the crisis and recovery will own the near and intermediate terms. And the relative performance should reflect that fact.

High-yield stocks offer a nice buffer while we weather the rest of this storm. And I’ve found two companies that pay high and secure dividends and whose relative value in the market should soar in the months and quarters ahead.

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