The two-year Treasury yield is 4.241%, while the 10-year yield is 3.578%, data research firm DataTrek said in a report on Monday. This is the most serious upside down since the early 1980s.Issued the strongest warning of the recession.,It could also be a sign that the US stock market is going to suffer more.
The upside-down yield curve has been a reliable indicator of recession, suggesting that the market is pricing weak growth prospects. Nicholas Colas, co-founder of DataTrek, said that even if the upside-down does not mean a recession is coming, the economy is more vulnerable to exogenous shocks and the stock market should be prepared for more pain.
Since the Fed aggressively tightened policy last year to curb inflation, investors have become increasingly worried about recession, which in turn has created a lot of demand for defensive safe havens. Among them, high dividend stocks, which are regarded as a good buffer during market volatility, have become the new favorite of Wall Street.
Many investors prefer dividend stocks, especially when the market is shaky, high-yield stocks have become a safe haven because they can earn stable cash flow.
The key to investing in high-interest stocks depends on the long-term dividend record. Such high-dividend stocks will be more attractive if a company continues to increase dividends over the years.
To select such high-quality dividend-paying stocks, you can use the "dividend aristocracy" standard as a reference, that is, stocks that can continue to pay dividends every year and increase dividends every year. What's interesting is thatFactSet also selected the best, based on which it selected the 15 companies that have increased their dividend payments the most in the past five years.
Of the 15 dividend aristocratic companies, 11 have a five-year total return that exceeds the S & P 500.
Among them$T. Rowe Price (TROW.US)$、$AbbVie (ABBV.US)$、$Williams-Sonoma (WSM.US)$Ranked in the top three with "compound annual growth rate of dividends over the past five years" of 16.05%, 15.82% and 14.87%.$Automatic Data Processing (ADP.US)$、$Fastenal (FAST.US)$、$Aflac Inc (AFL.US)$、$Target (TGT.US)$、$NextEra Energy (NEE.US)$Wait for it to follow.
Judging from the five-year total return, a number of stocks have doubled, with the highest total return as high as 171% and the lowest 22%, with an average total return of more than 90%.
Edit / phoebe