The Dividend Dilemma: Expert Tips for Surviving and Thriving Through Cuts
Learn how to bounce back from dividend cuts like a pro
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Tweet of the Week
Weekly Market Update 🗒️💡
Indexes
Stocks fell again on Friday to end the week with all 3 major indexes breaking multiweek winning streaks.
The S&P 500 lost 1.4% last week, breaking a 5-week streak of consecutive gains.
The Nasdaq also fell 1.4%, bringing an end to its 8-week win streak. This also marks its worst weekly performance since March 2023.
The Dow fell nearly 1.7%, ending a 3-week streak.
This pullback came as a result of more than 400 stocks in the S&P 500 trading in the red, with information technology leading the charge down more than 1%.
Notable mention to Nvidia NVDA 0.00%↑ who saw share prices fall almost 2%.
The Energy sector now has the highest level of buy ratings on the S&P 500
2nd quarter earnings season is around the corner and Wall Street analysts are placing their bets on which sectors of the market are firing on all cylinders. One of those bets is Energy, accumulating the highest level of buy ratings across the board (64%).
Close in second place are Communication Services (62%) and Information Technology (60%).
Sectors seeing the lowest levels of buy ratings are Utilities and Materials (49%) followed by Consumer Staples (44%), which also happens to have the highest level of sell ratings (10%).
REITs
One of the biggest opportunities in the market right now. Interest rates have an adverse effect on real estate. As rates rise, the real estate sector gets hit harder. Makes sense, money becomes more expensive, mortgages become unaffordable, defaults on loans, less rent is being paid, and less money is being generated by REITs. It’s a domino effect.
And with recent bank collapses, investors are now viewing REITs as the next target. Bank failures cause lead lenders to become more conservative in providing loans, which could cut out a large percentage of consumers. What happens when these businesses that thrived on cheap money can’t get their hands on it anymore? They’re all tenants to someone, right?
My thoughts: Learn about the economic cycle. Study it and understand it. Fear is everywhere. But with fear comes opportunity. I’m buying REITs as much as I can. The financial system can’t allow the real estate sector to fail. One thing I am doing is avoiding office real estate like the plague, but retail, residential, and industrial look very attractive right now.
Keep building your empires.
Expert Tips for Surviving and Thriving Through Cuts
Dividend cuts: A dividend investor’s worst nightmare.
As it is with any type of investing, putting your money in the stock market comes with risk. And one of the main risks of dividend investing is a dividend cut. Something we can’t entirely control, but we can take steps to minimize the chances of it happening.
In today’s post, we will be teaching you how to identify the signs that a dividend cut is near and how to respond if and when it does happen.
Recognizing the signs
Navigating the cut
Managing your risk
3 of the most important topics when it comes to being a successful dividend investor.
What is a Dividend Cut?
A dividend cut happens when a company decides to decrease or eliminate its dividend payments to shareholders. This can happen for a variety of reasons.
Economic downturns - the market goes to sh*t
Financial hardship - the company goes to sh*t
Changes in business strategy - management goes to sh*t
Unexpected events - the world slaps you with some sh*t
As you can see, there’s a lot of sh*t involved when it comes to dividend cuts. But don’t worry, we’ll show you how to navigate the waters so you’ll be more than prepared to take on the sh*t.