We remain in a directionless market. And that’s why dividend stocks are your best choice right now.
And by dividend stocks, I don’t mean stocks with huge dividends. I mean stocks that have the ability to grow in any market and deliver a solid, reliable dividend that you can reinvest in more stock (in many cases), accumulate for new share purchases or use as income.
These are really what investing insiders call total return stocks. They provide solid income and capital gains growth. And the combination can be very beneficial, especially in rudderless markets like the one we’re in.
What’s more, even when the economy starts to head in a clearer direction, these stocks will shine since economic growth powers their growth as it has for decades.
And in down markets, these are the rock-solid stocks that smart investors turn to as uncertainty rises and investors get serious about reliable dividends, earnings and revenue.
Bank of America (BAC)
Bank of America(NYSE:BAC) isthe second largest bankin the U.S. with more than 66 million customers. It’s also theninth largest bankin the world.
Ironically, BAC started in San Francisco in 1904 as the Bank of Italy. After a number of mergers on the East Coast and West, it was officially named Bank of America in 1930.
Most of its size has come by acquisition over the past nine decades, but it remains the West Coast bookend to East Coast powerhouseJPMorgan Chase(NYSE:JPM), although admittedly BAC is currently headquartered in North Carolina. But the core of its organic growth has historically been in the west until more recent decades.
And it has always been an innovator. It wasone of the first banksto accept the credit card concept, BankAmericard, in 1958, which went on to becomeVisa(NYSE:V). It has been through a lot in nearly a century of operation and the fact that it has become such a powerful domestic and global player is testament to its management, innovation and durability.
The stock has lost 25% YTD, but that shouldn’t be a long-term issue. Consider this a discount. BAC also has a 2.3% dividend that is about as reliable as they come. This is a good entry point for long-term total return investors.
This stock has an A rating in my Dividend Grader.
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