2 High-Yield Dividend Stocks That Could Skyrocket in a Bull Market
There's a lot of debate about whether we're in a new bull market after the S&P 500 rebounded more than 20% from its recent bottom. While this current rally might fizzle out if we experience a recession later this year, bear markets always give way to a new bull market -- eventually. When that upswing finally occurs, cyclical stocks that fell during the bear market could rally sharply.
The recent bear market hasn't been kind to Devon Energy (NYSE: DVN) and NextEra Energy Partners (NYSE: NEP). They both currently sit more than 30% below their 52-week highs. This sell-off has pushed their dividend yields up to much higher levels. Here's why these high-yield dividend stocks could skyrocket in a bull market.
As an oil producer, Devon Energy's cash flow rises and falls with crude prices. Oil prices have fallen during the current bear market on concerns that the economy will slow down and sap demand for oil. However, crude prices tend to rally during bull markets because the economy is growing, fueling more demand for oil.
Source Fool.com
