3 High-Yield Stocks to Help You Handle the Next Recession
Whether you're looking for income today or building wealth for the future, high-yield dividend stocks should be a cornerstone of your portfolio. But too often, people get caught up in chasing the highest yield or buying stocks they recognize, while ignoring the risks a company may face if and when the economy moves from growth to recession.
Want to avoid creating a potential weak spot in your own portfolio? Don't risk too much of your portfolio in companies that are driven by consumer spending, commodity prices, or other levers that tend to get pulled when the economy goes soft. Instead, look for companies that provide something that's always in demand, generate predictable cash flows, and have a history of paying a sizable dividend (and growing it). If you invest in these kinds of stocks, there's a very good chance you will be rewarded with many years of market-beating returns.
Make sure your portfolio is ready for a rainy day. Image source: Getty Images.
Source Fool.com
