Here’s When the Summer Rally Ends (and 2 Dividends to Buy on the Dip)

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Bad news for your friends who only own “America’s ticker”—the S&P 500. We’re set up for a September swoon that could easily send the SPDR S&P 500 ETF (SPY) down 5% or more from current levels.

Good news for us income investors—we’re going to have a great dip to buy some of our favorite dividend payers.

We’ll talk about the best dividend stocks for September in a moment. We’ll specifically highlight two “low-drama dividends,” too.

First, let’s discuss why we need to get ready for a pullback.

History Points to a September Swoon …

For one, if we look back to 1945, as the folks at CFRA Research did, we’ll see that September has been the worst month for stocks, with positive returns just 45% of the time.… Read more

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These days, we contrarian income seekers are following a simple rule: “trade lightly.” Truth is, we saw this mess coming. It’s why we started lightening up our positions in my Contrarian Income Report service back in November.

In so doing, we’ve locked in some very nice returns, like 90% on chemical maker Chemours Co (CC); 44% on blue-chip-focused closed-end fund (CEF) Gabelli Dividend Trust (GDV); and 98% on the PIMCO Dynamic Income Fund (PDI—formerly PCI).

We didn’t sell any of these dividend payers because something was wrong with them—far from it!

They’d simply ridden Jay Powell’s cheap-money wave as far as they could.… Read more

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