February 7, 2022
There’s no easy way to put this.
While stocks bounced back following a brutal January, there’s still plenty of catalysts that could send the market into a tailspin.
Not only are there still COVID-19 variants floating around, we have historically higher inflation, and even a hawkish Federal Reserve. In fact, when the Fed starts to wind down its QE program, and starts hiking interest rates, markets could pull back. Mid-term elections are nearing. And there’s potential conflict brewing with Russia and the Ukraine.
Plus, there’s no shortage of panicky investors ready to rush for the exit doors.
In fact, it’s why futures are slipping again this morning. The Dow is currently down 110 points. The S&P 500 is down about 12, as the NASDAQ sinks about 31.
That’s the bad news.
The good news is there are plenty of stocks out there that can keep your portfolio safe no matter how crazed markets get this year. Look at dividend stocks for example.
WP Carey (WPC)
With WP Carey, nearly all of its rental agreements include contractual rent increases for inflation, according to BNK Invest. In fact, about 60% are tied to the consumer price index.
Well diversified with industrial, warehouse, office, retail, and self-storage, the REIT also pays a yield of 5.59%. Even better, WP Carey has 23 consecutive years of annual dividend increases.
NextEra Energy (NEE)
Should markets pull back, some of the most stable investments can be found in utility stocks. After all, demand for utility services will always remain intact, even in the worst of times.
Look at NextEra Energy, which carries a dividend yield of 2.03%, and provides a basic need service: electricity. Even better, the company has generated a positive total for investor in 19 of the last 20 years.
Costco Wholesale (COST)
Another safe stock to consider in market downturns in Costco Wholesale.
With a dividend yield of 0.61%, COST sells needed products that consumers must have no matter how well or how poorly the economy is doing. In fact, no matter how steep of a downturn, consumers still need soap, detergent, toothpaste, toilet paper, and food.
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