Summary
- This article is part of our monthly series where we highlight five companies that are large-cap, relatively safe, dividend-paying, and are offering large discounts to their historical norms.
- It's always a good idea to keep your wish list ready by separating the wheat from the chaff.
- We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on US exchanges, including OTC networks. In addition, we present two other groups of five DGI stocks, each for investors who need higher yields.
- Looking for a portfolio of ideas like this one? Members of High Income DIY Portfolios get exclusive access to our model portfolio.
Obviously, we have been on a roller coaster ride since the beginning of this year. As we write this, the S&P 500 is once again hovering under SPX4200. Once again, the focus is on the Fed. The Fed is behind the curve and now in atight spot to balance the situation between dealing with the persistent inflation but at the same time not pushing the economy into a recession. Will the Fed be successful in taming inflation while still avoiding a full-blown recession? It is anybody's guess, but the market is very wary of their ability to do so. The only silver lining at the moment is that almost everyone is bearish, and that, in fact, may be a good sign for a bull rally, at least in the short term. Long term, it will really depend on if we are able to avoid a recession or not.
As always, being long-term investors, we don't pay too much attention to short-term market noise and keep the focus on the long-term game plan. We should always remind ourselves that there's only one thing certain in markets, and that's "uncertainty," and our portfolios should be structured in such a way that they provide decent and proportionate returns when the market is booming but preserve the capital when times get tough.
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