Smart Investors Dropping Growth Stocks for High-Dividend Opportunities

LONDON, Feb. 20, 2019 /PRNewswire/ -- The world's leading crowd-sourced dividend investment advisor says a slowing global economy means growth-only investors are dumping their old flame and pursuing high income instead.

"Buying stocks and funds that pay high dividends is the smart money right now," said Rida Morwa, who manages one of the world's top high-dividend internet-based investor newsletters at SeekingAlpha.com.

"Counting on growth alone when it comes to investing is no longer a viable option," Morwa said. "In an environment where growth is slow, inflation is low, and interest rate trends continue to decline, the hunt for high yield, especially by the aging Baby Boomers, will continue and will become even stronger."

This month alone, Morwa's High Dividend Opportunities has seen a 20 % jump in subscribers seeking high income. "In this slowing global economy, we're seeing hungry investors streaming into high-dividend stocks," Morwa said. "They realize that monthly and quarterly income from more rational companies is a much better bet than relying on the erratic and volatile Mr. Market."

As a result of an aging population and a lower population growth, economic growth necessarily slows, keeping inflation low. In response, central banks in Japan and the Eurozone are trying to stimulate growth with quantitative easing in order to increase the money supply and make loans even cheaper. So is China. Meanwhile, in the United States, the Fed appears unwilling to raise interest rates.

"This kind of synchronized recognition of risks by central banks, and coordinated efforts to stabilize the global economy, can have some wonderful results," Morwa said. "If executed properly, these international bankers have a good chance of shifting the economy back to growth next year, and thus pushing any recession risks until 2022 at least. In the meantime, High Dividend Opportunities is earning a 9% dividend yield for their investors by focusing on high dividend value stocks and funds, including preferred stocks, baby bonds, property REITS, and utilities."

"With central bankers across major economies putting their weight to rekindle economic growth, recession risks will be reduced and pushed back till the year 2022 or later," Morwa said. "This also will support equity prices, and I believe that the S&P 500 index should reach well above the 3,000 level in 2019. The year 2019 should be a good year for equities."

Growth stocks will recover some of their recent losses and should see renewed interest," Morwa continued. "However, lower economic growth and low inflation means that the hunt for yield will continue. High-dividend stocks and sectors which have had a stellar performance so far in 2019 will continue to outperform."

The full version of the above article was published on Seeking Alpha. The following is the link:
https://seekingalpha.com/article/4237534-global-economy-slows-grab-yield-will-accelerate

Rida Morwa is CEO of Aiko Capital Ltd. His High Dividend Opportunities, with over 2,000 members, is one of the world's largest communities of income investors and retirees. Morwa is a former CPA, with 30 years' experience in investments and commercial banking. He has been advising both individuals and institutional clients on high-yield investment strategies since 1991. https://seekingalpha.com/author/rida-morwa/research?source=googlerm

SOURCE Aiko Capital Ltd.