4 High-Yield Stocks to Sell Before Summer Starts

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Sometimes it’s best to sell in May and just stay away. Especially when a firm’s dividend stream is being eaten alive by Amazon & Co.

The Wall Street Journal’s Mark Hulbert studied the “summer rally myth” last year – and concluded it is indeed a good time to sell:

“Over the past 60 years, the Dow Jones Industrial Average has produced an average monthly return of just 0.1% during these three summer months, compared with a 0.7% average for all other months.”

Worse, even skilled market timers don’t have much to work with. Hulbert found that over the past 60 years, rallies from June’s lows into highs over the next two months averaged 6.9% — the third-lowest such rally potential, behind (you guessed it) July and August.…
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Real estate investment trusts (REITs) have essentially one job to do for their investors – pay reliable dividends. Many do, but when firms find their payouts in jeopardy things get ugly in a hurry. Which is why you need to avoid, or sell, the five ticking time bombs we’re going to discuss today.

Dividend cuts don’t just “happen.” When a REIT slashes or suspends its dividend, it’s rarely a surprise – and rarely an isolated incident.

Let’s consider Armour Residential REIT (ARR) – here’s five years of dividend cuts and misery:

Sure, the current yield for Armour always looks good at 10% or higher. Problem is, its payout can’t be trusted. And neither can these five unsustainable dividends. …
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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