(SOTW) Top Dividend Stocks For A Correction

Summary

  • Here are the dividend stocks I am focused on buying if a correction gives us an opportunity soon – all are from the Plug & Play.
  • I have excluded stocks that are already in their buy zones that I said to buy in recent weeks: T, KMI, GOLD.
  • I have also excluded the MAAA stocks and Berkshire Hathaway, you should know to buy those on major corrections (you may buy QQQ or another fund heavy in MAAA stocks).
  • Depending on your asset allocation strategy, you should be trying to own 20-30 dividend stocks that can beat the market by a few points with less risk.

Here are the dividend stocks I am focused on buying if a correction gives us an opportunity soon – all are from the Plug & Play. I have excluded stocks that are already in their buy zones that I said to buy in recent weeks: T, KMI, GOLD. I have also excluded the MAAA stocks, you should know to buy those on major corrections unless you are relying on QQQ.

Depending on your asset allocation strategy, you should be trying to own 20-30 dividend stocks that can beat the market by a few points with less risk.

When buying dividend stocks, focus on company quality over dividend yield. In the coming decade, many, probably most, of the zombie companies, those paying out a dividend that requires debt accumulation, will cut their dividends with their share prices following down. 

Dividend growth investors understand that rising dividends come from earnings growth. Earnings growth can come from only a few things: expanding revenues, declining costs and higher productivity. 

Dividend Stocks

In rough order of preference (click company name for buy zone chart):

Lockheed Martin (LMT) $317-251: Just flat out one of the best companies on the planet. Great tech across multiple platforms. Is right on top of the buy zone and almost ready to start being scaled into. 

Analog Devices (ADI) $120-102: Huge potential winner from move to smarter cars. Great balance sheet. Great tech. 

Newmont Mining (NEM) $53-45: Along with Barrick (GOLD), one of the two best positioned gold miners in the world. Have been waiting for an S&P 500 correction to buy again as it is a component. 

Nutrien (NTR) $44-37: The commodity cycle, with led by China demand for corn and soy, and supply having been somewhat constrained in 2020, on top of climate change induced soil destruction, is likely to cause a super cycle for fertilizer stocks. Potash Corp, which merged with Agrium, to form Nutrien several years ago, was around $100 per share. I see that again in the next several years. Solid balance sheet. Oligopoly with no new competitors on near term horizon ((BHP) someday maybe). And, pays a juicy divi.

Lumen Technologies (LUMN) $14-10: The market is missing that the company is making progress in 2 of 3 business lines and has positioned to sell or stabilize the other. The value of the fiber and highly scalable enterprise business are almost completely overlooked. Big dividend and improving balance sheet. 

Cisco Systems (CSCO) $42-39: A bit of a grandpa among tech stocks, i.e. the rich one that still works. They’re in on everything connected and have a lynchpin role in internet security which should become more profitable as malicious commi threats are pushed back on.

Crown Castle (CCI) $149-140: Leader in cell towers. Digesting recent growth, is forming a nice consolidation pattern. One good dip and start to scale in.

American Tower (AMT)  : Leader in cell towers. Digesting recent growth, is forming a nice consolidation pattern. One good dip and start to scale in. 

I like the following 4 REITS as a group because they diversify into a nice asset allocation and are all market leaders. Try to buy the entire group. Scale in.

Vici Properties (OTC:VICI) $24-21: A great property owner for Caesar’s Palace and other gaming, hotel, restaurant and golf locations nationally. The “what’s the market missing” is the 34 undeveloped acres next to the Las Vegas Strip. A great rebound play that’s stabilized, another buy the dips stock.

Store Capital (STOR) $28-25: Easy to manage and adapt growth properties with great class of tenants. A Buffett holding. Rising dividend, solid balance sheet. Buy the dips.

STAG Industrial (STAG) $28-25: Converting secondary and tertiary industrial properties into primary industrial facilities as supply chains move back to America enabled by machine learning and resource availability. 

Urstadt Biddle (UBA) $13-11: Suburban NYC strip malls largely anchored by grocery stores. Got a little ahead of itself, but is very solid and should drift higher a long time with a good dividend. 

Here’s this week’s Stocks Of The Week webinar: 

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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