Ok let's talk strategy. With the recession currently destroying the marketplace, what are you doing to protect your investments?
Personally, I've moved almost my entire portfolio to provide me solid and regular #dividends . These stocks are all meant to provide solid growth into the future, with fair to solid safety behind them. Rather than just picking up the highest yields possible, I try to pick something that will grow while providing a 3.5%+ yield, and then I throw in a few higher yield options to tip my port's yield in my favor. My currented weighted yield is 7.31% with an average yield of 4.07%.
$SBR , $GOOD , $HRZN , $GAIN , $O , and $MAIN will provide monthly yields for reinvestment. Should provide me with solid cash flow to either invest in new oportunities, or grow my current holdings for further gains into my future. $GOOD is probably the most volatile of the bunch, but Gladstone has such a good management team I feel solid in my investments in both $GOOD and $GAIN
$FSK , $IEP , $ABR are my highest yield holdings at 12.67%, 15.42%, and 10.50% respectively. These are more volatile holdings, but may produce some really good returns as interest rates rise. They're kind of a gamble overall, but I'm betting they turn reasonable profits for me. Their 5-year total returns are around 41%, 120%, and 200% respectively. They are all down in value with the current market the way it is, but their yields will help me make up for that while the market works to recover.
Others to mention would be:
$ARCC (absolutely fantastic looking into the future with just shy of an 8% yield). This is a save investment with a lot of upsides. They have strong earnings and strong growth. ARCC is a top-quality BDC.
$STOR has a 5.63% covered yield. They have been growing their dividend payout for 6 years now, and have an incredibly strong portofilio. This is a great REIT to pick up with a ton of safety, fantastic growth, and an above-average yield.
$CWH There was a moment where I really considered selling out of this investment. They have a very attactive 7.77% yield and their growth over the last 5 years has been phenomenal (likely in part to the growing camping trends started during COVID). After doing some more reasearch, I'm willing to hold onto this investment and see where it takes me. CWH is really a market-leader plus they find income from servicing RVs as well. I think, with enough time, this investment can really skyrocket in value. Right now it's down in price and may continue declining with the rest of the economy, but hey that just means cheaper stocks right?
In the energy sector I hold $SO , $CWEN , and $NEE . Southern Company has a couple new Nuclear reactors coming online here in the immediate future (one within the next two quarters, and another the latter half of 2023); with parts of world (EU, Japan) finally looking like they want to expand nuclear power, maybe there will be sentinment in the US as well that could benefit $SO
$CWEN is simply a large green-energy supplier that's still growing. I really want to be invested in green energy production while the market is still expanding; regardless of political stance on green energy, it will be the future of energy production in one form or another.
$NEE has the lowest yield here at 1.98%, but with 26 whole years of dividend growth behind it (incredible)! This is a fantastic green energy stock (though, valuation is high right now so it may not be the best time to buy). They also have their hands in Nuclear power, which I already discussed about with $SO .
Finally, I have some lower-yield options in my port. $NOC , with world tensions as they are, could see some big boosts in value. They have a low 1.44% yield, but great potential for growth. Plus, military spending (need I say more?). $DGRO is a 2.13% yield ETF with 7 years of dividend growth; all that while their total returns are a match for $SPY . If you want some safe and growing dividends with extreme value, $DGRO is a solid pick.
Speaking of ETFs, I also hold $SCHD . This has a 3.33% yield with 9 years of growth and, as far as total returns are concerned, has been beating $SPY . If I was going to just drop 10 grand in one ETF, it'd be $SCHD .
I also own $VYM to a lesser extent which has an approximate 3.02% yield with 11 years of dividend growth. Its total returns are lesser than SCHD or DGRO, hence why I haven't been expanding this holding.
Finally, $WDIV is my last high-yield ETF with a 5.3% yield. This is probably my least favorite of ETFs intended for dividend payouts; they don't regular grow their dividend, and their value overall doesn't grow very rapidly. I had picked this up right as I was getting into investing and liked that over 5% yield, however I wasn't educated enough about it at the time and would really rather have those funds elsewhere. With the markets down, WDIV is also down and I'm not willing to take the loss (not that the value has fallen that far). If it recovers with the market in the future, I may ditch it and shift those funds to $SCHD .
Last stocks I want to mention are $SQM , $LTHM , and $ALB . These are Lithium stocks, and looking at the recent explosion in value for these made me extremely interested. I took a larger position in $SQM , who has a 4.44% yield and looks like it could continue providing amazing value going into the future. $LTHM had their IPO back in 2018, and has seen a HUGE return since then; they don't pay dividends, though, so I only bought a couple shares for now. I want to grow that position, though. $ALB rounds it all off; I've not staked a position here yet, and they only provide a 0.55% yield (garbage) but this is an incredibly strong company that could see huge upside as lithium continues to grow in demand. I'd also like to state the fact that, as our scientists get better at Nuclear Fusion Lithium will be a key element to breeding Tritium to continue the Fusion reaction. Due to world supplies of Tritium being increcibly tiny (it's a rare resource that is only really produced in small amounts when cosmic rays interact with nitrogen, or in nuclear reactors where it's not even regularly captured for later use), breeding will be necessary.
Hadn't updated lately because I've been spending all of my time #learning and researching all kinds of things related to investing. I've been reading, reading, and reading more. You should, too!
Hopefully something here is helpful to your portfolio; make sure to do your research before investing in anything, to ensure it not only has a place in your port but also will provide you the value you're seeking.
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