What if a credit related event caused liquidity to dry up. What dividend paying stocks would you buy if there was a 60% haircut on nearly all companies? Leading to dividend yields going up (assuming dividends aren't cut). I would try to avoid companies with debt financed dividend (say Exxon). The risk is that companies can cut their dividend if they have issues with their debt or sales drop off.
Volatility can be your friend if you have cash on the sidelines.
I'm focusing on companies that have recession proof dividends.
My picks:
Altria, EPD, BTI, EVA, LMNR
Energy, tobacco, farmland
Thoughts?
Submitted May 22, 2021 at 09:56PM by therivera https://ift.tt/3yzqs9l
