Despite recent selling, from a macro standpoint, most of the headlines are positive for equities. Overseas, Europe is posting better-than-expected economic data, China is upping fiscal stimulus, and India is leading a rebound in emerging markets from a very tough multi-month slide.
On U.S. soil, the Fed remains committed to accommodative monetary policy, and corporations are in very good shape in terms of balance sheets, raising dividends, making acquisitions and increasing share repurchases.
But it’s true that markets don’t recover overnight from a nasty beating. To be clear, the shift to high-quality, dividend-paying stocks won’t be a short-term trade but a genuine rotation to diversify into lower-beta exposure to even out the risk/reward ratios of portfolio is in the making.
But as the luster comes back to high-yield, Profit Scanner has uncovered five dividend stocks with strong technical pictures for the short-, intermediate- and long-term time-frames to fit nicely within the macro landscape.