Category Archives: Dividend Investing

Stock Market Crash: Wait or Buy Stocks Now?

The U.S. and Canadian stock markets made a lower high earlier this month. That’s a bearish indicator. Another stock market crash may just be around the corner. 

Source: Stockcharts with author annotation. Canadian stock market made a lower high in June 2020. The U.S. stock market’s chart is simila
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Stock Market Crash Coming: 2 Stock Investing Strategies

We believe the stock market has recovered too fast and that stock market crash 2.0 is coming.

COVID-19 is undoubtedly the biggest drag on the global economy. The pandemic has pushed up unemployment rates and pulled down GDP, as it swept through and destroyed multiple industries (think tourism, hospitality, brick-and-mortar retailers, retail real estate).

Some are optimistic about the situation, thinking that vaccines can save the day. Unfortunately, even when effective vaccines become available, it’s going to take quarters, if not years, for the economy to recover.

Additionally, COVID-19 isn’t the only thing that’s weighing on the global economy. Let’s not forget about trade wars, anti-racism protests, low energy prices, high debt levels, and the upcoming U.S. presidential election. They all add pressure and or uncertainty to the economy.

With the above backdrop in mind, here are two stock investing strategies you can consider. 

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Value Stock Rally: Bargain Dividend Stocks Still Available

It was value stocks’ time to shine. They rallied. 

They were too cheap to ignore. 

Real estate stocks with big exposure to retail properties took a big hit from COVID-19 disruptions. 

Here are two examples.

STORE Capital: Dividend Stock Yielding 5.6%

STORE Capital (NYSE:STOR) fell as much as 65% from last year’s high. Then, the dividend stock developed a base in the $16-18 range for about three months before appreciating approximately 46%.

Source: Stockcharts with author annotation

It still offers a nice yield of 5.6%. And it still trades at a discount of about 20% from its normalized valuation. However, it’s meeting short-term resistance right now at about $26. The price action in the next two weeks will tell us if it’ll break above it or not. 

The commercial real estate company has a diversified portfolio consisting of 2,552 properties across 49 states and 491 customers who operate across 113 industries.

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