One Chart: Investors are buying dividend stocks for safety
According to WSJ, some investors are searching for safety by dumping shares of high-growth technology stocks for stodgier businesses that pay shareholders cash, including banks, oil companies and telecoms.
Shares of energy giant $Exxon Mobil(XOM.US$ and regional bank $People's United Financial(PBCT.US$ 3.21% are up double-digit percentages. Both have dividend yields of at least 3.4%, almost three times higher than the S&P 500's.
Investors poured $7.5 billion into funds that buy dividend-paying stocks in January, the most on record, according to data from Refinitiv Lipper, with more than $2 billion of inflows during the week ended Feb. 2.
However, if companies cut payouts amid deteriorating economic conditions, investors may abandon these companies.
$Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$ $S&P 500 Index(.SPX.US$ $Invesco QQQ Trust(QQQ.US$ $Meta Platforms(FB.US$ $PayPal(PYPL.US$ $Verizon(VZ.US$
Investors poured $7.5 billion into funds that buy dividend-paying stocks in January, the most on record, according to data from Refinitiv Lipper, with more than $2 billion of inflows during the week ended Feb. 2.
However, if companies cut payouts amid deteriorating economic conditions, investors may abandon these companies.
$Dow Jones Industrial Average(.DJI.US$ $Nasdaq Composite Index(.IXIC.US$ $S&P 500 Index(.SPX.US$ $Invesco QQQ Trust(QQQ.US$ $Meta Platforms(FB.US$ $PayPal(PYPL.US$ $Verizon(VZ.US$
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Molly wealth talkOP : Do you buy some dividend stocks? Why?
102292805 : What are best dividend stocks in your view now?
Rigid Bull 102292805: I would say avoiv Oil stocks those are in a bubble and will crash when oil prices come back down to reality. The increase in Oil prices will push more and more people over to EV's.
If the economy is going to crash I avoid banking stocks aswell.
I think the safest bet will be healthcare pharmacy stocks no matter how bad the economy or inflation gets people will always need medicine and health products.
Even though most growth stocks have crashed quite a bit are we near the bottom or will we keep falling?
in my opinion everything will be fine towards the end of the year and we will rebound. but who knows? there is so many different people saying different things. I don't think anyone really knows what will happen.
cry64 : hi dear
TRIUMPHANT RETURNS Rigid Bull: When recession occur people will be JOBLESS, and you think they have money to buy a NEW EV? even now with every basic NECCESSITIES rising, the extra to BUY A new EV when there 's a backlog of orders stretching until NEXT YEAR ?
Strik57 : I think portfolios should be diversified which includes dividend stock.Market volatility is high so investing by using margin makes higher risk against your own money you've invested.so stay patient n dont sell out of fear.trust in your investments based on good company fundamentals n keep adding shares of companies that you see longterm potential is best investment.Good luck in your investment
Molly wealth talkOP Rigid Bull: Good.
Thanks for your sharing
Molly wealth talkOP TRIUMPHANT RETURNS:
Molly wealth talkOP Strik57:
Diversification is a good investment strategy for many people.
Rigid Bull Molly wealth talkOP: People have different ideas of diversification and think because they are in different companies they are diverse. I spoke to someone who said they are diverse because they have Microsoft Apple and Tesla in their portfolios
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