What should we make of today’s market conditions? Investors have started digesting how the Federal Reserve’s ‘higher for longer’ interest rate policy will impact the economy, and they’re not pleased with the prospect. Other challenges on the horizon include an increasing probability of a government shutdown as Congress grapples with partisan disagreements over annual budget resolutions, declining consumer confidence as worries mount, and a sharp surge in oil prices on the commodity trading floors.
All of these factors should rekindle interest in strong defensive plays, particularly high-yield dividend stocks. These stocks offer both protection and passive income during these challenging times.
Wall Street analysts seem to concur, as they have identified high-yield dividend payers as attractive buys right now. Let’s delve into two of these picks: ‘Strong Buy’ stocks with at least 10% dividend yields and the potential for share appreciation of up to 40% in the coming year.
Wall Street analysts seem to concur, as they have identified high-yield dividend payers as attractive buys right now. Let’s delve into two of these picks: ‘Strong Buy’ stocks with at least a 10% dividend yield and the potential for share appreciation of up to 40% in the coming year.
OneMain Holdings (OMF)
First up is OneMain Holdings, a financial services company with a particular focus on providing consumer services to customers in the sub-prime banking loan segment.
The company offers this demographic a full range of financial services, including personal loans and insurance products, designed to make quality banking services available to a customer base that may not qualify for service from more traditional bank providers. OneMain takes great care on the front end, vetting its customers, and ensures its screening process keeps the default rate down. OneMain is best known for its online presence, but it also maintains an extensive network of physical branch offices totaling some 1,400 locations spread across 44 states.
OneMain’s asset portfolio is valued at…