Two “Trade War Proof” Dividends Paying 6.6% and 6.7%, Trading Dirt Cheap

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Markets went off the rails this week, as the 10- and 2-year Treasury yields invert.

In fact, the 10-year Treasury bond yield just slipped to 1.627%, which was below the 1.632% yield on the 2-year.  That was the first time that’s happened since 2007.

Even the yield on the 30-year bond just fell to an all-time low of 2.02%, which was below its former record low of 2.0889%.

What’s nerve-wracking is that such a development in the 2/10 has occurred ahead of every U.S. recession over the last 50 years, sometimes leading by as much as 24 months, says Fox Business. … Read more

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You and I know why people buy real estate investment trusts (REITs). They’re income machines that are literally mandated to take the lion’s share of their profits and put them back into shareholders’ hands as cash dividends.

It’s no secret. Just about anyone who buys into REITs know that they produce far bigger dividends than your typical stock.

But put most people in front of a Yahoo! Finance or Google Finance stock chart, and they’re suddenly struck by selective amnesia. Because they forget that these charts only consider price gains and don’t include REITs’ outsized dividends.

Let’s look at some of the optical delusions investors find when they stumble across the charts–then look at what happens once you split out price and total returns (with dividends).… Read more

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Today we’re going to dive into the two “cheapest” corners in the S&P 500. Because with the terrible performance these 2 sectors have put in this year, you could think both are bargains now.

But the truth is, only one of these sectors is worth buying into now (I’ll name 4 specific stocks in a minute). In fact, the last time we saw a market like today’s, stocks in this overlooked pool spiked 41%!

The other sector? A textbook “value trap”—it’s cheap for a reason, and is about to plunge further.

You can see the 2 sectors I’m talking about in this chart from Yardeni Research:

The 2 worst performers, consumer staples (the purple line) and real estate investment trusts, or REITs (beige line) have flopped 12.4% and 8.5%, respectively.…
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