Sell Alert: Two High-Yield Sectors Getting Risky

Jun. 28, 2024 1:23 PM ET, , , , , , 35 Comments
(2min)

Summary

  • I am very bullish on high-yield stocks right now.
  • However, there are a few high-yield sectors that, I think, are getting quite risky, and I am avoiding as a result.
  • I detail two of these sectors and also share some of the more attractive high-yield opportunities of the moment.
  • Looking for a portfolio of ideas like this one? Members of High Yield Investor get exclusive access to our subscriber-only portfolios. Learn More »

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tumsasedgars

In general, I'm quite bullish on high-yield stocks (SCHD) right now, as it appears that inflation is increasingly under control and likely to trend lower over time. Additionally, the economy is weakening, with unemployment rising to around 4% recently, and typically, a weakening

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This article was written by

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Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering with a focus on applied mathematics and machine learning. Samuel leads the High Yield Investor investing group. Samuel teams up with Jussi Askola and Paul R. Drake where they focus on finding the right balance between safety, growth, yield, and value. High Yield Investor offers real-money core, retirement, and international portfolios. The services also features regular trade alerts, educational content, and an active chat room of like minded investors.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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