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Charles Lewis Sizemore, CFA
Charles Lewis Sizemore, CFA
Articles 

The 7 Best Dividend Stocks to Buy for Q3 and Beyond

As they say, it ain’t over until the fat lady sings, and we still have another half of the year left to go

July 14, 2017 | About:

The following is an excerpt from The 7 Best Dividend Stocks to Buy for Q3 and Beyond.

The theme for the first half of 2017 was something to the effect of “Buy Amazon.com (NASDAQ:AMZN) and dump pretty much everything else.”

At least that’s what it seemed like. Recent pullback aside, 2017 has broadly been a great year for tech … but it has been a lousy year for “old economy” stocks like energy, retail and autos, and for dividend stocks in general.

But as they say, it ain’t over until the fat lady sings, and we still have another half of the year left to go. Today, we’re going to take a look at the best dividend stocks to buy for the third quarter and likely the rest of the year.

You’ll immediately notice that there are several names on the list that struggled in the first half of the year, and that’s by design. After a lengthy stretch of underperformance, I expect to see value stocks — and particularly dividend stocks — take leadership.

Last year, we saw a similar pattern. Energy stocks, REITs and dividend stocks in general started the year in the doghouse. But in the second half, they roared back to life.

I can’t promise the same will happen this year. But given some of the high dividend yields on offer, I’m comfortable showing a little patience here. We’re being paid handsomely in cold, hard cash to wait for the market to appreciate value.

So with no further ado, here are the seven best dividend stocks for the second half of 2017…

As I started this piece by saying, the dominant theme of 2017 has been the unstoppable rise of Amazon … and the equally unstoppable destruction of traditional brick-and-mortar retail.

Frankly, there is a lot of truth to this sentiment. Amazon really is upending shopping malls and big-box retailers. But there are plenty of areas of the retail economy that are healthy, and triple-net retail REIT VEREIT Inc. (NYSE:VER) has solid exposure to them.

VEREIT is one of the very cheapest REITS in the retail space. Part of this is due to the lingering stench of scandal following its predecessor company’s accounting restatement a few years ago. But investors who eschew VER because of the sins of its former management are really missing a good opportunity. VEREIT has a high-quality portfolio of restaurants, pharmacies, deep-discount stores and other tenants that tend to be Amazon-resistant.

VER also pays an attractive 6.7% yield that promises to rise in the years ahead as the company completes its planned divestitures and returns its focus to growth.

I consider VEREIT on of the few REITs that is priced to double your money in the next 2-3 years, so it belongs in any list of best dividend stocks for the second half of 2017.

To read the rest, see: The 7 Best Dividend Stocks to Buy for Q3 and Beyond

Disclosures: Long VER.

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.


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