The coronavirus pandemic has thrown both the world and the market for a loop. For investors – especially dividend seekers – this has created quite a quandary. How can we navigate the new and changing market but yet gain much needed income?
It might take some thinking outside the box. And, counterintuitively, the cyclical names may be a good bet.
The basic materials stocks, cyclicals and other economically sensitive firms may seem like a bad bet in these times. However, the relationship with lower rates and higher inflation expectations makes the sector a big buy, which could be just what dividend seekers need to power their portfolios.
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