Your Safety Plan Should Start With These ‘Low Vol’ Yields up to 6.3%

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Your Safety Plan Should Start With These ‘Low Vol’ Yields up to 6.3%

With a recession likely at some point, we’re going to focus our attention today on recession-resistant dividend stocks.

With all the talk of a “soft landing” or even “no landing”—the nightmare inflation scenario in which the economy keeps humming—we contrarians are going to take a step back. And respect the yield curve.

In a normal economy, longer-dated bonds would pay more than shorter-dated issues. After all, more time, more things that can go wrong. Which is why you and I are smartly prepping for a recession, regardless of what the latest financial narrative is.

The 10-year Treasury bond has paid less than its 2-year cousin for many months and counting.… Read more

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Are Utilities Still the No. 1 Safety Play?

Utility stocks—the “OGs of dividend payers”—have sailed through 2022. We’ll highlight seven of them, yielding 4% or more, in a moment.

By the way, this sector-at-large has returned 4%, including dividends, year-to-date (YTD). While that may not make us rich, it is the best record on the scoreboard this side of energy:

Why utilities? As always, these stocks pay and they don’t drop as much in price as the broader market. A useful quality in a dumpster-fire market.

Utilities are expensive, however, They currently trade at nearly 21 times forward earnings—near their highest forward P/E in decades and well above the S&P 500 forward P/E of 17.7.… Read more

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