100 years ago, we (Americans) called sudden drops in the stock market panics. Now they’re recessions or bear markets. If you can be greedy when others are fearful and keep a level head when doing research, you’ll be fine.
On Finviz there is an incredible stock screener that investors should use to find and buy better stocks. With the market down 30% since its high in December, now is the time to start finding stocks for both the long and short-term. So far, I’ve lived through the S&L Crisis in 1987, the Dotcom Bust in 2000, the Housing Bust, and now Covid-19 — every time it was a different catalyst. That means, there will be different companies that offer the most upside.
With that in mind, here is a shortened list from a recent screen that produced over 370 stocks which yield more than 10% in annual dividends. There is a caveat. The earnings in these companies will likely be lower in the short term, maybe irreversibly damaged, but for many 10% will be the new baseline long-term and that will produce better returns than any major asset class, for 99% of investors. So, it’s worth exploring.
Note: This post will not provide any further insights onto why, figure that out for yourself. By the time you read this, yields may have changed, but I have tried to only offer up the companies that will likely not cut their dividend entirely, even if some cut backs take place.
1. The world’s largest ad agency (WPP) is offering a 12% yield
2. The Gap (GPS) is also offering a 12% yield
4. Ford Motor (F) is yielding 12%, and the race for electric vehicle supremacy is still far from over
5. One of the largest owners, suppliers, and operators of gasoline stations and convenience stores, Global Partners (GLP) is offering a 20% yield right now, with the stock down 50% this month
7. Credit service company X Financial (XYF) is yielding over 11%
8. Iron Mountain (IRM) offers a10% yield
10. Brazil’s largest electric utility firm Companhia Energetica de Minas Gerais CIG is providing 10% yield right now
11. Life insurers Aegon, ING, and Prudential carry heavy yields of 18%, 15%, and 10% respectively. Let’s remember that current numbers for death to cases of Covid-19 is around 3%. I don’t know if that will put these firms under any long-term risk of bankruptcy.
13. For the non-major oil and gas companies that include drillers, equipment and service providers, refining, pipelines, etc. the list gets pretty long. A few of the better ones are CNOOC, Holly Energy, Williams, Marathon, Sunoco, Phillips 66, and Valero which all yield over 10%.
14. B&G Foods, food manufacturer of grocery products like Skinny Girl and Weber is yielding 11%.
Could it get worse? Of course. Every stock listed here could be down another 20–50% from today’s trading price by the end of this viral scare. My main question is will this be a one off black swan even, or will it be the norm?