The markets are becoming increasingly confusing as we head into the fourth quarter. The economic recovery is still staggering towards sustainable growth, but the headlines are full of shutdown and debt ceiling chatter.
The length and full consequences of the current government shutdown are unknown at this point, which has investors jittery and confused. And even if we manage to get through this budget battle, the road ahead is hardly clear considering the debt ceiling limit will need to be raised before October is over.
All in all, the current political circus makes it difficult for investors — and income investors in particular — to know what to do.
Fortunately, if you’re an income investor searching for the right stocks to provide the income needed to fund retirement or other investment needs, the solution is pretty simple.
By picking high-yielding dividend stocks with the very best fundamentals, you can sidestep all the political froth and collect streams of income with a chance for strong capital appreciation.
One such dividend stock is Kohlberg Kravis & Roberts (KKR) — one of the largest and most successful private equity firms in the world today. KKR earnings are driven by the fees and incentives it collects off its funds, which have invested money all over the world. The results have been strong and investors in KKR stock have been receiving a generous payout as a result.
What’s more, KKR management recently said that it is a great time to be investing in private equity and that more good times lie ahead. Alex Navab, co-head of private equity for the Americas at KKR, believes the U.S. economy has healthy growth on tap through 2016 or 2017.
Although payouts can fluctuate with the results of the funds and fees collected, the trailing yield for KKR is currently over 7.7%, while the stock is also rated a “buy” in Portfolio Grader.
For our second dividend stock to buy, we have Star Gas Partners (SGU). Sure, SGU is not one of the most exciting stocks on the board … but it is one of the better-yielding stocks right now.
The company distributes home-heating oil and propane to more than 400,000 customers in the Northeastern United States. It also maintains and repairs air conditions systems and even provides alarm and plumbing services to an additional 11,500 customers in the region.
Star Gas has grown by buying smaller competitors in what has always been a mom-and-pop market, and has achieved solid results. The stock is currently a “buy” in the Portfolio Grader rankings and yield 6.7% despite its market-beating 20% year-to-date climb.
The bottom line is that the markets are more confusing than ever — especially for investor seeking dividend stocks. Let Portfolio Grader be your guide to find high-yielding stocks with solid fundamentals and potential, and you can easily weather the current political storm.
Louis Navellier is the editor of Blue Chip Growth.