The time to step into quality dividend payers is when the crowd forgets there's never a bad time to own a high-quality stock.
The U.S. stock market broadened its rally this week, with all S&P 500 sectors booking weekly gains, as investors appeared relieved by interest rates in the bond market reversing some of their recent startling climb.
Shares of Realty Income (NYSE: O) declined by 7% in 2024, according to data provided by S&P Global Market Intelligence. That greatly underperformed the S&P 500 (SNPINDEX: ^GSPC), which rallied 23.3% last year.
The S&P 500 edged higher while the Nasdaq dipped after a volatile session on Tuesday as investors gauged inflation data and braced for quarterly earnings reports to justify stock valuations and the strength of the U.
The Nasdaq fell on Monday, while the benchmark S&P 500 bounced off a two-month low and eked out a slight gain as U.S. Treasury yields stayed elevated with investors dialing back expectations on the pace of rate cuts from the Federal Reserve.
US stocks jumped on Wednesday after consumer price data showed inflation continues to slow. Strong bank earnings also helped lift sentiment.
These four S&P 500 stocks pay 6% and higher dividends, have Buy ratings at top Wall Street firms, and are offering excellent entry points.
The good news is that, on average, bull markets tend to outlast bear markets. The average S&P 500 bull market between 1929 and 2023 has lasted 1,011 days, according to data from Bespoke Investment Group, while the average bear market has gone on for around 286 days.
Between 2020 and 2022, leading self-storage real estate investment trust (REIT) Public Storage (NYSE: PSA) saw its share price more than double thanks to a pandemic-aided boom. Since then, however, Public Storage's stock has dropped roughly 30% from its highs.
The highest-yielding Dividend Aristocrat stocks make sense now as they reside in sectors poised to benefit from a shifting economy.
Stocks have had a tepid reaction to presidential inaugurations, although this time could be different given Trump's potential to be unpredictable and ability to shake up markets with his commentary.
The Dow Jones Industrial Average fell 25.57 points, or 0.06%, to 42,706.56, the S&P 500 gained 32.91 points, or 0.55%, to 5,975.38 and the Nasdaq Composite gained 243.30 points, or 1.24%, to 19,864.98.