Your One-Time-Only Bonus Payment Inside
This year? Next year?
Whenever the next recession arrives…
It’s going to absolutely annihilate portfolios… but NOT yours.
That is, if you follow my advice below.
Your Easy Money Options
Unless you’re new to the investment game, you don’t need to be reminded how painful the 2008–09 financial crisis and the bursting of the dot-com bubble were. Markets fell 56% and 36%, respectively. Fortunes were lost and lives ruined.
And today many Wall Street pundits are fearing another crisis like those two world-changers.
One of the brightest minds on Wall Street is David Rosenberg, the current chief economist at Gluskin Sheff. He is one of the most widely quoted economists on the planet and is one of our time’s top thinkers.
For the past seven years he’s ranked No. 1 in the world at the Brendan Wood International Survey for Canada and has been on the Institutional Investor All-Star Team the last four years in a row.
Rosenberg really knows his stuff.
Rosenberg is quite worried about a recession and the stock market. Fortunately if he is right (which he often is), there are ways you can actually prosper during economic downturns.
No, I’m not talking about futures or commodities or “shorting” the stock market. What I am talking about is high-quality dividend-paying stocks.
How to Protect Your Portfolio
Rosenberg looked back to modern post-WWII recessions and found that quality dividend-paying stocks not only held their value but generated double-digit profits while everybody else was losing their shirts.
High-quality dividend stocks not only offer a safe harbor to ride out a recessionary storm, but the combination of dividends and capital appreciation averaged a 12.7% compounded annual return during the recessions.
There are several reasons for the stability, but I believe the No. 1 reason is that companies that pay dividends tend to be mature companies with long-established customer bases. They have stable revenues and profits, plus dividends are paid out of excess earnings. That means the business has the financial wherewithal to ride out a couple tough years.
Better yet, when the recessionary storms go away companies with strong balance sheets, established sales channels and strong market shares typically rebound the fastest.
Nothing in this world is truly “risk-free,” but high-quality dividend-paying stocks are the closest thing you’ll find to recession-proof on this planet.
Now here’s one of my favorites.
Main Street Capital Announces One-Time BONUS Dividend
Main Street Capital (NYSE: MAIN) has announced it is increasing its monthly dividend from $0.20 share to $0.205 share for the months of July, August and September.
Plus, MAIN will pay a one-time supplemental dividend of $0.25 a share on June 25 to those who become shareholders before June 18, 2019.
Bottom line: If you’re looking for a great recession hedge move, and one that is cutting bonus payments as we speak… look no further than shares of MAIN.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch