Recession-resistant stocks have the ability to outperform and survive better than other stocks during a period of stagflation. That is when inflation is high, employment is low and economic growth is either negative or faltering. This is what happened during much of the 1970s. This was when government policies were hostile to businesses and economic growth. Policy solutions tended to gravitate toward high taxes, bureaucratic interference and top-down solutions, rather than laissez-faire prescriptions. As a result, stocks faltered during much of that decade. It ended in a period of super high inflation that could only be broken by a very tight monetary policy. As things stand now, many of these lessons may end up having to be relearned. One way to avoid these pitfalls from an investment standpoint is to stick with strictly value-oriented stocks. That means stocks that pay dividends, have higher than average yields, good earnings outlooks and low price-to-earnings multiples. 7 Best Clean Energy Stocks to Buy Now Let’s dive in and look at these recession-resistant stocks to buy.
→ Google Übersetzer
I have chosen six recession-proof stocks to buy as the market boom ends. They pay dividends, have low payout ratios, low price-to-earnings (P/E) multiples, and good growth. As a result, these stocks have a good chance of surviving the oncoming recession, if, indeed, we aren’t already in one. Investors will stick with stocks that can afford to keep paying their dividends, even if that means that the payout ratio rises. That occurs when earnings fall and the ratio of dividends to earnings rises. Moreover, with low P/E multiples, these stocks have less potential downside risk than other highly valued stocks. High P/E stocks face the risk of multiple compression along with potentially lower earnings during a recession. Lastly, the payment of dividends provides a degree of stability for a stock compared to those that don’t pay dividends. This is inherently a value choice by investors as it provides a means for them to get a return of and on their capital. Highly-valued tech stocks that don’t pay dividends can’t provide that return of capital to their investors.
→ Google Übersetzer
This article today is about six strong dividend stocks to buy for high inflation. They have higher yields than the current inflation rate, which as of June 10, was reported to be 8.6% in the last 12 months. Most of these stocks are REITs (real estate investment trusts) or MLPs ( Master Limited Partnerships ) which are required to pay out 90% of their net income in order to keep their non-taxable status. MLPs tend to be focused on the oil and gas industry, although they are not required to be there. REITs are focused on the real estate industry — 75% of their income must come from related real estate activities, including rents, mortgage interest, or gains from the sale of the property. Just like MLPs, 90% of their income must be distributed. REITs tend to use leverage to enhance their income. These two industries tend to be focused on producing cash flow that can be distributed to investors. That makes them ideally suited to produce strong dividends to battle inflation. In addition, some of these stocks are business development companies (BDCs), which are also regulated investment companies.
→ Google Übersetzer
Upgrades According to Jefferies, the prior rating for Digital Realty Trust Inc (NYSE: DLR ) was changed from Hold to Buy. Digital Realty Trust earned $1.67 in the first quarter, compared to $1.67 in the year-ago quarter. At the moment, the stock has a 52-week-high of $178.22 and a 52-week-low of $124.00. Digital Realty Trust closed at $127.40 at the end of the last trading period. For Equinix Inc (NASDAQ: EQIX ), Jefferies upgraded the previous rating of Hold to Buy. For the first quarter, Equinix had an EPS of $7.16, compared to year-ago quarter EPS of $6.98. The stock has a 52-week-high of $885.26 and a 52-week-low of $606.12. At the end of the last trading period, Equinix closed at $649.50. Jefferies upgraded the previous rating for Crown Castle International Corp (NYSE: CCI ) from Hold to Buy. In the first quarter, Crown Castle Intl showed an EPS of $1.87, compared to $1.71 from the year-ago quarter. The current stock performance of Crown Castle Intl shows a 52-week-high of $209.87 and a 52-week-low of $153.70.
→ Google Übersetzer
Omega Healthcare Investors has a dividend of $0.67/quarter and is fully covered by the AFFO and presently has a yield of 9%. See more on OHI stock here.
→ Google Übersetzer
This list of six REITs (real estate investment trusts) should outperform inflation on a total return basis over the next year. That means that the combination of each stock’s price growth and dividend yield will overcome the effects of inflation. That’s because these are all high-quality REITs that produce enough income to cover their distribution payments. As income prices rise, these companies are able to raise their prices to their customers. That will provide higher income and greater profitability. 7 Undervalued Large-Cap Stocks to Buy for June Let’s dive in and look at these REITS further: MPW Medical Properties Trust $18.58 OHI Omega Healthcare Investors $29.77 MAA Mid-America Apartment Communities $181 IIPR Innovative Industrial Properties $133.05 NSA National Storage Affiliates Trust $52.45 PINE Alpine Income Property Trust $18.95 Medical Properties Trust (MPW) Source: Shutterstock Market Capitalization: $11.15 billion Dividend Yield: 6.2% Medical Properties Trust (NYSE: MPW ) is a hospital REIT and one of the world’s largest owners of hospitals, with 431 facilities and around 43,000 licensed beds in nine countries.
→ Google Übersetzer
Analysts forecast that Omega Healthcare Investors, Inc. will announce earnings of $0.68 per share for the current quarter, Zacks Investment Research reports. Four analysts have…
→ Google Übersetzer