Growth has been the big story for a very long time. And given some of the recent GDP numbers, as well as the passage of the tax bill in DC, growth seems to be on track for some time to come.
But there are a couple things that investors may want to bear in mind as we enter 2018.
First, the Federal Reserve is starting to raise rates again. And it’s expecting at least three increases in 2018.
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Second, the Fed is stopping its buying of mortgage-backed securities.
The latter is an entirely new occurrence for the market, since quantitative easing (buying the mortgage-backed securities) was an entirely unique situation when it began nearly a decade ago.
The one thing that will almost surely happen is interest rates will rise. And whatever effect that has on the economy and investing, it will help making income investing cool again.
And if the growth stocks cool off as money goes into bonds and the economy slows, income stocks could be the next hot sector. For that reason, below are my seven dividend stocks that make the grade.
Regardless of what happens, these will be winners.
Dividend Stocks to Buy: AT&T (T)
Source: Riccardo Annandale Via Unsplash
Dividend Yield: 6.2%
Williams Partners LP (NYSE:WPZ) is major midstream energy company that is based in the hub of U.S. energy distribution, Oklahoma.
Midstream players are basically pipeline companies and WPZ specializes in moving natural gas and natural gas liquids (NGLs) from the wellheads to storage facilities and refineries.
This sector of the energy industry is usually the leading indicator on the energy industry and the broader economy in general. Midstream firms make their money moving product, not on the price of the products.
That means, when demand is expanding — a sign that the economy is growing — midstream firms are getting more business. For products like NGLs, certain chemicals that are derived from natural gas and used to make plastics, paints and other items, as the economy grows industrial firms start ordering in advance of demand and the first place that shows up is in business like WPZ.
Plus, as a limited partnership, you’re considered an owner and get “paid” in the form of a dividend. Right now that’s a 6.2% paycheck.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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