Published Mon, 17 Feb 2020 09:11:31 -0500 on Seeking Alpha
SummaryThe "strongest economy ever" is fueled in large part by the growth of consumer, education, mortgage, corporate, and federal debt.
That debt will act as a drag on economic growth going forward, and it will also ensure that any upswings in interest rates are increasingly painful.
That said, it can't be ignored that wage growth across the skill spectrum is real.
This week's five picks include a family-controlled investment fund manager, a high-yield BDC with quality underwriting, an upscale restaurant owner, a global consumer packaging manufacturer, and a limited-service hotel REIT.
Honorable mentions are three names that have caught their own version of the coronavirus: a high-yield natural gas pipeline & storage company and two dividend-growing cruise lines.
Every week, I try to find the five most opportunistic and timely dividend stocks to highlight as "buy" ideas and present them in these articles. There are many dividend stock "listicles" (list articles) on the Internet, but relatively few of them focus solely on stocks that are good buys today. In a time of very low yields in both stocks and bonds, value investing becomes a vital way to generate a decent, reliable income stream.
That is as true for younger investors like me who focus on dividend growth and compounding as it is for retirees and near-retirees in search of current yield. So let's examine this week's five picks (including some honorable mentions) and explore why they could make strong long-term dividend investments.
But first, a brief note on the source of our "strong" economy.
The "Best Economy Ever" Is Built On Debt
The US economy is booming! The unemployment rate has hit a historically low 3.5%, wages are rising, consumers are spending, and prosperity reigns from sea to shining sea. It's morning again in America.
Then again, this picture of financial comfort and good fortune has a dark secret that is rarely acknowledged.... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ROYAL CARIBBEAN CRUISES||113.27||12.9||8.80||3.12||2.46|
|VANGUARD EXTENDED DURATION TREASURY ETF||137.28||0.0||0.00||0.00||2.29|
|ISHARES BARCLAYS AGGREGATE BOND FUND|
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