Despite the 4% selloff in the market so far today, there are some nice opportunities that are emerging. When stocks are acting as negatively as they are, investors need to shy away from the high flying "growth" companies (such as Netflix, Deckers, Chipolte, Lululemon, etc), and they need to focus on high yielding dividend stocks. Dividend stocks provide shelter from the storm in that even when the markets selloff, an investor can position their portfolio where they still "make money" from the payments that certain companies pay shareholders for owning their stocks.
The definition of a dividend is:
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.
Some of the best (and highest yielding) dividend stocks that are great investments are:
Chimera Investment Corp (CIM) which currently yields 18%
Verizon (VZ) which currently yields 6.5%
KKR Financial Holdings (KFN) which currently yields 9%
Altria Group - Phillip Morris (MO) which currently yields 6%
Bank of America Preferred Stock (BMLPRQ) which currently yields 8.25%
American Capital Agency Corp (AGNC) which currently yields 18%
Clorox (CLX) which currently yields 4.5%
Aside from dividend stocks, bonds can also offer protection from the selloffs that we've seen recently in the markets - I'll write about what bonds are and how investors can profit from investing in them soon.
