The end of February has been the worst market decline since the 2008 financial crisis. The coronavirus outbreak has had a significant impact on U.S. financial markets for the worse. Although this has dented many individuals retirement and investment accounts, a positive opportunity arises for individual stock market investors.
The silver lining in this market decline is the opportunity to buy shares of stocks and ETF’s that will inevitably rise again closer to their 52-week high amid a near-future market correction. In this blog article I will explore a handful of top stocks to purchase during the market slide.
#1 Prospect Capital Corporation (PSEC)
Description: Prospect Capital Corporation Common Stock, also called Prospect Capital, is a business development company. The firm engages in lending to and investing in private businesses. It also involves in generating current income and long-term capital appreciation through debt and equity investments. The company was founded on April 13, 2004 and is headquartered in New York, NY.
Reasoning: PSEC is an excellent stock because it may be categorized as a ‘dividend aristocrat’. Simply meaning the divided yield of PSEC is great enough to be considered such a category of dividend stocks. The dividend yield of PSEC fluctuates around 11%, an outstanding percentage yield. Your portfolio returns will skyrocket through purchasing shares of this stock.
#2 PowerShares S&P 500 High Dividend Low Volatility ETF (SPHD)
Description: SPHD tracks a dividend-yield-weighted index comprising the 50 least volatile names chosen from a shortlist of the S&P 500’s 75 highest-dividend-yielding securities.
Reasoning: This PowerShares managed ETF is an excellent choice for low volatility and an overall well-balanced portfolio. The low volatility stocks within this fund provide for smooth returns and the dividend yield speaks for itself. My recommendation is to buy up this ETF while the share price is down.
#3 Vanguard Dividend Appreciation ETF (VIG)
Description: Seeks to track the performance of the NASDAQ US Dividend Achievers Select Index (formerly known as the Dividend Achievers Select Index). Provides a convenient way to track the performance of stocks of companies with a record of growing their dividends year over year.
Reasoning: VIG performs for the long-term growth of your portfolio whilst paying dividends. The fund invests in high dividend stocks to seek account value growth. This stock is dependable and is worth buying shares of amid the market slide.
These dividend-based growth stocks should provide a light at the end of the tunnel for investors who want to trade more actively based on the market. Contact me with your favorite growth stocks for 2020!
Michael Moran, IHG Management