Dividend Energy Stocks Offer Best of Both Worlds

Why just settle for capital appreciation?

You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. Unsubscribe here Keep the emails you value from falling into your spam folder. Whitelist True Market Insiders. Forgot your login information? Click here.   Weekly Market Update Today is Feb. 26, 2022   Hey TMI Subscriber, Let's talk about dividend-paying stocks.    Why?    They allow you to profit in two ways: first, through the appreciation of the price of the shares, and second, through distributions made by the company.   It's not a bad idea to own them whether or not you're focused solely on retirement.    Many dividend-paying companies are quite large and successful. They distribute cash back to investors because they have a lot of money, and they feel pressure from shareholders to split those profits.   Certainly, past performance is no guarantee of future success, but it can be helpful to look backward when gauging these investment opportunities.    One thing TMI has already addressed this year is the major reversal of sector leadership. Energy-,and Financial-related sectors are atop our Relative Strength Matrix on the Sector Prophets Pro data platform.     Interestingly, over the past 10 years, no sector has been worse than the S&P 500 Energy sector. It has gained just 2.4% annualized over the decade, the only sector without a double-digit return.   Notably, all of that return has come from dividends. On a pure price-return basis, the sector is actually negative.   Today, the flip has switched with Energy as one of the best performers, up 31% in 2022, as the price of oil continues to toy with the milestone of $100 per barrel.   Some key dividend stocks in the Energy sector include Exxon Mobil (XOM), with a dividend yield of 4.49%, Chevron (CVX), with a dividend yield of 4.12%, and BP (BP) with a dividend yield of 4.01%.   If you want dividend yielders in your portfolio, it's important that you look for companies that have shown a commitment to raising dividends over the long run and have strong underlying earnings growth.     So-called "dividend growers" have historically generated higher returns than other dividend strategies while also keeping up with the broader market.   A company with strong earnings and dividend growth also provides some protection against interest rate hikes.   Finally, keep an eye on the utility sector. Utilities have historically been one of the highest-yielding and lowest-volatility sectors of the market, providing an important portfolio tool for risk averse, income-oriented investors.   Utility companies such as Duke Energy (DUK), Consolidated Edison (ED), and Exelon (EXC) have had decent returns over the years as well as paid nice dividends. Duke has a dividend yield of 3.75%, Consolidated Edison 3.71%, and Exelon is paying 2.72%.   Just like with any portfolio position, though, be sure to know your risk tolerance and stick to it. Now, here's a review of the latest TMI articles. This Week in True Market Insider  Feb. 21 - Feb. 25, 2022   Get Ready for a Huge Buying Opportunity— Chris Rowe   Chris Rowe says that all the technical indicators suggest the market will go lower. However, he's really looking forward to all the buying opportunities it will present. Powerful Forces are Working Against Your Portfolio — Tim Fortier   Economic forces continue to work against investors' portfolios as weakness becomes more broad. Tim Fortier says you need to have a good defensive strategy and the ability to profit from declines. Dispersion is a Sector Investor's Best Friend — Costas Bocelli   Costas Bocelli wants you to know that the bigger the gap in performance or "dispersion," between the best-performing sectors and the worst-performing sectors, the bigger your potential profits.   Invasion? What Invasion? Technical Indicators Don't Care — Karen Riccio   Seeing military tanks rolling into Ukraine can be emotional. But don't let emotions spill over into your investment decisions. Karen Riccio highlights three sectors thriving in today's complex climate. Watch This Presentation to Learn a Better Strategy for More Winning Trades   If you're not familiar with our Profit Skimmer trading service, now is definitely a good time to learn.    That's because with all this market volatility you may be looking at bonds or dividend stocks as hedges.   It's not your fault. That strategy has worked for many years.   Watch this presentation to find out a better way to invest. Copyright © 2022 True Market Insiders, All rights reserved. Our mailing address is: 7901 4th St. N STE 6113 St. Petersburg, FL 33702 Want to change how you receive these emails? You can change your preferences here   DISCLAIMER The information contained herein has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. True Market Insiders LLC is not an investment advisor and is not licensed to give specific financial advice. The chairman of True Market Insiders, Chris Rowe, is also the CEO, CIO and owner of Rowe Wealth Management LLC, which is not owned by and is not the owner of True Market Insiders. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable ("information providers"). However, such information has not been verified by True Market Insiders or the information provider and TMM and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. TMM and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.   Unless otherwise stated, performance numbers are based on pure price returns, not inclusive of dividends, fees, or other expenses. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. You should consider this strategy's investment objectives, risks, charges and expenses before investing. The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs.     The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Some performance information presented is the result of back-tested performance. Back-tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to illustrate the effects of the True Market Insiders LLC strategy during a specific period. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative Strength is a measure of price momentum based on historical price activity. Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon.   Back-tested performance results have certain limitations. Such results do not represent the impact of material economic and market factors might have on an investor's decision making process if the investors were actually managing money. Back-testing performance also differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. True Market Insiders believes the data used in the testing to be from credible, reliable sources, however; True Market Insiders makes no representation or warranties of any kind as to the accuracy of such data. All available data representing the full platform of investment options is used for testing purposes.