Recession Alert: Very Good News For Dividend Stocks

2025-06-11 07:05:00 ET

Making near-term macroeconomic forecasts is almost as difficult as predicting where the stock market will go in the near term. That being said, completely ignoring macro factors when evaluating stock purchases and making valuation estimates for stocks is also foolhardy because you need a base point from which to value stocks and determine how big of a margin of safety you think a company has, thereby helping you to make an informed decision on whether or not to buy the stock. Yes, diversification can help mitigate a lot of this, but you still need to have some sort of baseline view when determining if the yield that investment offers is attractive or not relative to where you think interest rates are headed, for example, or if you think that a company that is sensitive to economic conditions is going to have its earnings plunge, soar, or remain relatively stagnant in the near term....

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