President Trump has set the stage for the end of the world’s major countries taking advantage of unlimited largess and trade considerations from the United States, a practice that began after World War II and has been in place in some form or another ever since. Foreign governments and companies have been allowed to sell their products in the United States at virtually no cost. In contrast, American companies face tariffs and value-added tax (VAT) on products sold in foreign countries. That practice could be ending, as the United Kingdom has signed a comprehensive trade deal, and China and the United States have agreed on a 90-day tariff pause in the hopes of reaching a final arrangement.
Over the years, and through many corrections and market downturns, bear market rallies have emerged as temporary increases in market prices during a broader bear market, or a period of sustained price decline. These rallies are often short-lived and can be misleading, as they may signal a return to the uptrend when, in reality, the downward trend is likely to resume. During the dot-com sell-off from 2000 to 2002, we experienced multiple 20% rallies that faded, and investors got caught off guard. During this period, the S&P 500 declined a stunning 37%.
After the massive rally from the early April lows, aided by the temporary agreement with China, which keeps 10% tariffs in place, and some 20% tariffs due to fentanyl, many investors are wondering if the coast is clear and the market will rally back to its old highs. Others feel there is a good chance we will retest the lows, especially if the Chinese tariff deadline is not met with an agreement.
We decided to screen our 24/7 Wall St. research database, looking for high-yield stocks that will perform well regardless of whether the bulls or the bears prevail this time around. The four top stocks we spotted are just the ticket to play what could be a crazy and volatile summer. All are Buy-rated at the top Wall Street firms we cover.
Why do we cover high-yield dividend stocks?
Dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Apple Hospitality REIT
This company owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT Inc. (NYSE: APLE | APLE Price Prediction) is a publicly traded real estate investment trust that pays a solid monthly dividend and distinguishes itself in the market with its unique offerings.
The company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states and one property leased to third parties. Its hotel portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
The hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:
- Hilton Garden Inn
- Hampton
- Courtyard
- Residence Inn
- Homewood Suites
- SpringHill Suites
- Fairfield
- Home2 Suites
- TownePlace Suites
- AC Hotels
- Hyatt Place
- Marriott
- Embassy Suites
- Aloft
- Hyatt House
Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, and Michigan.
Bank of America has a Buy rating and a $17 target price.
British American Tobacco
This British multinational company manufactures and sells cigarettes and other tobacco and nicotine products. European giant British American Tobacco PLC (NYSE: BTI) is a consumer-centric, multi-category consumer goods company that pays shareholders a huge, dependable dividend. The company segments include:
- United States
- Asia Pacific
- Middle East and Africa
- Americas
- Europe
The company’s product categories include:
- Vapor
- Tobacco Heating Products (THP)
- Modern Oral
- Traditional Oral
- Combustible cigarettes
Vapor products are handheld, battery-powered devices that heat a liquid (called an e-liquid) to produce an inhalable aerosol, known as vapor. THPs are a new category of tobacco product designed to heat rather than burn tobacco.
Modern Oral products are smoke-free oral nicotine products, commonly referred to as nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff.
The company’s brands include:
- Vuse
- glo
- Velo
- Grizzly
- Dunhill
- Kent
- Lucky Strike
- Pall Mall
- Rothmans
- Newport
- Natural American Spirit
- Camel
- Vogue
- Viceroy
- Kool
- Peter Stuyvesant
- Craven A
- State Express 555
- Shuang Xi
Bank of America has a Buy rating with a $52 price target.
Hess Midstream
Hess Midstream L.P. (NYSE: HESM) is a fee-based, growth-oriented midstream company that owns, operates, and develops diverse midstream assets. It is the midstream arm of a limited partnership owned by one of the country’s top energy companies. Hess owns 38% of Hess Midstream, which owns, develops, operates, and acquires midstream assets.
The company operates through three segments:
- Gathering
- Processing and Storage
- Terminating and exporting
The Gathering segment owns natural gas gathering and crude oil gathering systems and produces water gathering and disposal facilities. Its gathering system consists of approximately:
- 1,350 miles of high and low-pressure natural gas and natural gas liquids gathering pipelines with a capacity of about 450 million cubic feet per day
- The crude oil gathering system comprises approximately 550 miles of crude oil gathering pipelines
The Processing and Storage segment comprises:
- Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota
- 50% interest in the Little Missouri 4 gas processing plant located south of the Missouri River in McKenzie County, North Dakota
- Mentor Storage Terminal, a propane storage cavern, and a rail and truck loading and unloading facility located in Mentor, Minnesota
The Terminaling and Export segment owns the Ramberg terminal facility, the Tioga rail terminal, crude oil railcars, the Johnson’s Corner Header System, and a simple oil pipeline header system.
Citigroup has a Buy rating for the shares with a $44 price objective.
LyondellBasell
This is a global leader in developing and supplying materials that enable packaging, health, and transportation solutions. This blue-chip chemical giant offers a long history of strong performance and a tempting dividend. LyondellBasell Industries N.V. (NYSE: LYB) operates as a chemical company in:
- United States
- Germany
- Mexico
- Italy
- Poland
- France
- Japan
- China
- Netherlands
The company operates in six segments:
- Olefins and Polyolefins-Americas
- Olefins and Polyolefins-Europe, Asia, International
- Intermediates and Derivatives
- Advanced Polymer Solutions
- Refining Technology
It produces and markets olefins and co-products, including polyethylene and polypropylene, propylene oxide and its derivatives, oxyfuels and related products, as well as intermediate chemicals such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol.
In addition, the company produces and markets compounding and solutions, including:
- Polypropylene compounds
- Engineered plastics, masterbatches
- Engineered composites, colors, and powders
- Advanced polymers, including catalloy and polybutene-1
- Refines heavy, high-sulfur crude oil, other crude oils, and refined products, including gasoline and distillates
Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications.
Wells Fargo has an Outperform rating with a $85 price objective.
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