Dividends Over Drama: Here's What Smart Money Is Buying

Apr. 08, 2025 7:30 AM ET, , , , 75 Comments
(16min)

Summary

  • The "cash trap" isn't a trap at all. It's a strategic advantage. With trillions in money market funds, many investors are waiting for the right time to deploy capital.
  • In volatile markets, a smart strategy is to buy the dip, especially for those holding cash reserves. Investors should focus on long-term growth, avoiding impulsive moves.
  • Opportunistic plays, including resilient dividend stocks and investment-grade bonds, remain attractive. Even with market uncertainty, there are solid opportunities for growth.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »

Wanderin erkundet den Yosemite-Nationalpark

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Introduction

Have you ever heard of the cash trap?

Last year, I wrote a number of articles on this phenomenon, including one on October 30, which had the title "A $6.8 Trillion Cash Trap? 2

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This article was written by

42.89K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AM either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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