‘We’ve got a lot more to go’: Suze Orman thinks we’re headed for a recession and warns it could get ‘a little ugly” This is what she likes for safety.
According to personal finance expert Suze Orman, more pain will likely come for the markets.
“W” is experiencing a bull bounce within a bear market. WeWe’veot a lot more to do, and in August, September, we might start to see things a little ugly,” “he said in a recent interview with Yahoo Finance.
The personal finance author, TV personality, and podcaster also see trouble looming in the distance for the US economy.
“P”rsonally, I think wewe’reoing to have a recession at the end of this year or early next year, a mild one.”
“n the positive side, Orman offers a solution for those looking for a flight to safety.
“I” you want to be safe and sound, buy dividend-paying stocks that pay you at least 3% or more. Make sure you know about the companies and how they operate so that you at least get something as these markets continue to fall,” “he sa.
LeLet’sake a look at three companies that fit the description.
not missing
Real estate income (O)
Real estate investment trusts (REITs) are known for providing big dividends. But like any other industry, real estate company dividends are not set in stone.
Regarding paying reliable dividends, one real estate stock stands out: Realty Income.
Realty Income is a REIT with a diverse portfolio of more than 11,000 commercial properties in all 50 states, Puerto Rico, the UK, and Spain. It rents them out to approximately 1,090 different tenants operating in 70 sectors.
This means that even if a tenant or industry goes into recession, the impact on the cocompany’sinancial results is likely to be limited.
Realty Income has been paying uninterrupted monthly dividends since its founding in 1969—that’s 23 consecutive monthly tips.
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Since the company went public in 1994, it has announced 116 dividend increases. The stock is currently yielding 4.4%.
Last week, Credit Suisse analyst Omotayo Okusanya kicked off coverage of Realty Income with an “o”tperform” “ating. Its price target of $75 implies a potential gain of 9%.
Chevron (CVX)
Energy stocks have proven to be big winners during the oil price boom. Chevron, for example, is up 21% in 2022, in stark contrast to the broad mamarket’souble-digit decline.
As an oil and gas supermajor, Chevron is running at full throttle. For the first quarter, the company reported profits of $6.3 billion, more than a fourfold increase from $1.4 billion in the same period last year. Revenue was $54.4 billion for the quarter, up 70% year over year.
In January, ChChevron’soard of directors approved a 6% increase in its quarterly dividend rate to $1.42 per share. That gives the company an annual dividend yield of 3.9%.
Orman sees further upside potential in oil but warns that energy stocks can be volatile.
“O”l will go up to about $135, maybe $145 a barrel. But it would help if you kept a close eye on your oil inventories because it can turn into a dime,” “he says.
Earlier this month, Cowen analyst Jason Gabelman reiterated an “o”tperform” “ating for Chevron, as he raised its price target from $165 to $179 – about 22% above where the stock stands today.
AT&T (T)
We pay our mobile and internet bills every month. If you want revenge, consider collecting dividends from companies that provide these services.
For example, AT&T is one of the largest telecommunications companies in the world. More than 100 million consumers in the US use its mobile and broadband services. At the same time, the company also serves almost all Fortune 1000 companies with connectivity and smart solutions.
And because wireless and Internet services are necessary for the modern economy, AT&T is generating a recurring business through thick and thin.
The company pays quarterly dividends of 27.75 cents per share, representing an annual return of 5.3%. To put things in perspective, the average S&P 500 company only yields 1.6%.
Tigress Financial analyst Ivan Feinseth has a buy rating for AT&T and a price target of $28. The stock is trading around $20.90 today, so its price target implies a potential upside of 34%.
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This article provides information only and should not be construed as advice. It comes without any warranty.
