Concerns regarding decelerating economic growth are expected to offset bullish market sentiment, causing the benchmark indexes to retreat soon. Given this backdrop, we think investing in fundamentally sound dividend-paying companies could help hedge the systematic risk. Vale (VALE), Dow (DOW), and OneMain Holdings (NYSE:OMF) pay dividends that yield more than 3%. So, let’s evaluate these names more closely.U.S. futures slipped in the pre-market trading session today due to disappointing jobs data and declining Treasury yields. CNBC’s Jim Cramer said, “The charts, as interpreted by the legendary Tom DeMark, suggest that the market’s getting close to a top, especially the S&P 500 and the Nasdaq 100. He’s not too keen on the Dow Jones Industrial Average, either.”
Because most of the industry leaders have announced their most recent quarterly earnings results, the stock markets are expected to witness a sharp correction soon. Technical analysis and charts indicate that the S&P 500 will likely experience a “tough month.”
With the Fed’s reiterated dovish monetary policy stance for the near term, and with declining bond yields, investing in fundamentally sound companies with high dividend yields could be a wise move now. Industry leaders Vale S.A. (VALE), Dow Inc. (DOW), and OneMain Holdings, Inc. (OMF) pay dividends that yield more than 3%. Given these companies’ strong fundamentals we believe they are worth considering for one’s portfolio now.