In light of the events in Ukraine and Gaza, the fact that the major averages are trading higher shows that, despite the ugly nature of these highly fluid scenarios, neither situation poses a serious threat to the global economy. With more than 700 companies set to report earnings in the next two weeks and the likelihood of more merger activity also prevalent, any downside move in equities will, in my view, be well contained.
When China reaffirmed its second-quarter GDP growth rate at 7.5% last week, it was another big positive — the second-largest economy in the world enjoyed an uptick in domestic growth. Europe’s economy is more intertwined with that of Russia’s and thus could see some pressure if there is no constructive break in the tumultuous set of developments out of Ukraine.
While it is still unknown exactly how much risk these measures bring to bear for equity markets, earnings are looking up and interest rates remain low — and the outlook for stocks remains favorable.
However, as the world turns, there is a feeling for those who follow news outside the United States that a lot can go either right or wrong in a hurry. Uncertainty breeds comfort in what you know, and knowing that an income stream can be relied on in a broadly diversified portfolio really helps smooth out any volatility that unknown elements can bring to one’s investments.
For investors seeking income during these uncertain times, look no further than the 10 highest-yielding stocks in the Dow Jones Industrial Average. These blue-chip names pay out sizable yields ranging from 2.93% to 5.18%, and all of them stand to benefit from the market’s appetite for income. (Note: All yields and returns are as of July 30.)