Margin of safety is a concept that often gets ignored during booming economies and when the market is surging. But these days, with inflation running high and stocks sinking, margin of safety has become very important. To that end, value stocks have once again gotten the nod from investors.
And it turns out that’s a great thing.
With their higher dividends, lower price-to-earnings/sales/book, and built-in margin of safety, value stocks have held up wonderfully during the current market malaise. And the best could be getting started. With many analysts resetting earnings expectations, value stocks could be the key to navigating the future environment with ease.
You can check out the Best Dividend Protection Model Portfolio to explore all the stocks targeting very safe dividends to preserve capital and beat inflation.