Retirement Strategy: 3 Dividend Themes Still Ripe For The Picking

Joe Springer profile picture
Joe Springer


  • With record low rates, dividend yields have headed lower.
  • Three dividend themes still look like good opportunities.
  • Fertilizers, food, and hospitality REITs are still offering good yields and entry points.

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Yields on bonds are at all-time record lows. The world is struggling with slowing economic growth, and central banks are doing whatever it takes to get traction. Their actions may be necessary to avoid catastrophe, but investors who are currently looking for yield are in a dubious seller's market. As the Wall Street Journal delicately puts it:

This is evidenced by the Vanguard High Dividend Yield ETF (NYSEARCA:VYM), which printed a new all-time high today, and now yields less than 3%. This run-up in high-yielding assets has been terrific for dividend stock holders, but going forward, we are in a world where high yield means 2.XX%.

What should we do?

We still see opportunities. Here are three dividend themes that we think are still ripe for the picking, plus two honorable mentions.

Honorable Mention: Telecom

Verizon (VZ) and AT&T (T) have surged as bond yields have fallen, but they still yield 4% and 4.5% respectively. The companies are saddled with debt and struggling to grow, but they generate a lot of cash and pass it on. Those yields look like they have hit their floors for now, but they could always reset downward again, providing some more capital gains along with the juicy income.

Honorable Mention: Utilities

In September of last year, we called regulated utility Wisconsin Energy (WEC) the "Best Treasury-Like Dividend in the Market". At the time, we were in a period like right now. Yields had gone lower, and the question was, "Where do we turn for yield now?" We got some comments like:

I am long and I liked WEC better @ 45 and added to my position at that time. 4% yield. If it drops back down, then is the time to get it. Value, value , value with utilities.

This article was written by

Joe Springer profile picture
Joe Springer was the number 1 ranked stock analyst in the world by, and enjoys teaching about the stock market as well as crushing it. Watch Joe every day on Investors Club on Youtube: the free newsletter:

Disclosure: I am/we are long AMNF, VZ, WEC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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