One of the market’s most tried and true investing strategies could be about to take a big hit…
For decades, dividend investing has been a favorite strategy of countless investors.
Advisors have made careers out of identifying the most stable stocks with the best paying or fastest rising dividend.
Investors buy and hold these stocks for the long-term, collecting income year after year from dividend payments.
During the extended bull run from 2009 to 2020, dividend investors absolutely cleaned up.
But there are warnings signs ahead for those looking to generate income from the market’s top dividend stocks.
In addition to the impediments I listed on my Money Morning Live appearance yesterday – COVID, interest rates, etc. – fears over a potential recession remain a constant threat to the market.
And one of the best indicators of a potential recession is dividends being cut.
Sure, it can be tempting to buy a stock like The Coca-Cola Company (KO) and collect a roughly 3% dividend while much of the market falls, but not all dividend stocks are created equal.
We’re already seeing cracks begin to form with some of the market’s most popular dividend stocks.
Intel Corporation (INTC) recently announced a major cut to its dividend by more than 65% – reducing it to its lowest level in 16 years.
While there have already been a lot of other high-profile dividends cut this year, many are still waiting for the other shoe to drop…
One of the biggest potential dividend cut concerns is International Business Machines Corporation (IBM), which has been a dividend investor’s favorite for years now. But lately there’s cause for concern. IBM’s dividend is way too high, having paid out an incredibly high 334% of its profit as dividends last year.
Many experts believe IBM will be forced to cut its dividend, along with numerous other companies should a recession come to pass, leaving traditional dividend investing weakened.
That makes the timing of what I saw yesterday incredibly fortunate…
The Income Trading Strategy of the Future
With the huge potential for some of the best dividends in the market to be slashed in the near future, traders should be prepared with other income trading strategies that can deliver solid, reliable returns.
Yesterday evening, Mark Sebastian and Andrew Giovinazzi revealed the Weekly Wealth Trading strategy that they’ve been using for the past seven months to help build their wealth.
The strategy that’s given them a steady average of 8% returns in 14 days…
The strategy with potential to change the lives of option traders everywhere.
And in case you missed it, Andrew and Mark are going live again at 4pm ET to show you how one weekly trade has handed out a steady 8% average gain in just 14 days…
On the same TWO tickers, no matter the market environment.
Don’t miss another chance to see this incredible strategy before it’s too late.
Click here to reserve your free spot.
That’s all for now.
To your success,
Tom Gentile
America’s #1 Pattern Trader
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