☝️ Stocks with Dividends Attract Attention During Bearish Pullback ☝️
Dear traders,
In today’s article we are going to review some interesting stocks that are worth your consideration when building a medium-term portfolio.
This article will focus on earning a decent return via dividends. But we will also dive into the newest developments and charts…
SPX Retracement Becoming Serious
The SPX reached a new high. But price action quickly made retracement below the important level of 3300.
US Central Bank President (FED) Powell said in front of the congress that the banks will do whatever is needed to sustain the economy, but the concerns about a possible second wave of Covid and consequently a new lockdown increase the uncertainty of the market in general.
Volatility is also increasing due the US Presidential elections in November. Statistically the months before the elections are very volatile.
The Vix is around 30 which indicates that high volatility is on its way.
In the previous article, we show how to protect a stock portfolio or speculate on bear markets with the use of PUT options. The concepts illustrated are still in play with this market.
Stocks with High Dividends
Let’s see an example for the educational purpose of a medium term stocks portfolio based on dividend returns. In the process of selection for a stock, a good evaluation has to be made on dividend returns.
There are some very interesting stocks that have very good dividends over the year. The selection of course takes into play several considerations and numbers, but a good dividend can boost the return of the stock.
Here is an example of a medium term portfolio:
| STOCK | PRICE | SECTOR | DIVIDEND |
| PFE – PFIZER | 36.25 | Pharma | 4.19% |
| CSCO-CISCO | 39.32 | Technology | 3.66% |
| BAC-BANK of AMERICA | 23.94 | Finance | 3.01% |
| T- AT&T | 28.51 | Communications | 7.30% |
| KO- COCA COLA | 49.66 | Consumer | 3.30 |
| KHC-KRAFT HEINTZ | 29.23 | Consumer | 5.47% |
| XOM – EXXON | 35.53 | Energy | 9.79% |
| INTC- INTEL | 49.95 | Electronic Tech | 2.64% |
| TLT- 20 yr Treasury | 164.27 | Bond | 1.62% |
As you can see most of the stocks have a good dividend like AT&T with 7.30% and XOM with 9.79%. Also, they range in different sectors which is important for diversification purposes. And a hedge like TLT 20yr Treasury bond is a good instrument to balance the portfolio.
Become an US Options Trader
Thinking about options but not sure yet? There are a couple of ways to move forward before committing to the course or educational signal service. Here is how you can stay in touch:
- Join the free ecs.OPTIONS telegram channel
- Sign-up to the ECS newsletter with trading ideas in your email inbox
If you are ready to move forward, then you can choose from:
- €899 one time fee for Options course in English – this includes 1 month of option trading ideas (option.SWINGS).
Option trading ideas (option.SWINGS) – experience is required: - €97 per month (including VAT)
- €289 per quarter (including VAT) – receive 1 month for free for a total of 4 months
- €899 per year (including VAT) – receive 2 months for free for a total of 14 months
Good trading,
Marco Doni – ecs.OPTIONS expert and CNBC contributor
The articles are not intended to give any advice on how to invest money, they are just for educational purposes.
