With high-yielding dividend stocks, fear can be an investor’s most vital investment tool. We learned that from Warren Buffett, Sir John Templeton, and even Baron Rothschild. Sir John Templeton taught us to buy extreme pessimism, as he did with European stocks in 1939. Warren Buffett advises that a “climate of fear is your friend when investing; a euphoric world is your enemy.” Also, we all remember his advice to “be fearful when others are greedy and greedy when others are fearful.” Now, we can use it for hunting for beaten-down dividend stocks.
Baron Rothschild once told investors, “The time to buy is when there’s blood in the streets, even if the blood is your own.” He knew that very well, considering he made a small fortune buying the panic that followed the Battle of Waterloo against Napoleon.
In short, fear can lead to massive opportunities. In fact, we found three opportunities in oversold high-yielding stocks that are just now recovering from a 52-week low.
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With a yield of 6.8%, Canadian pipeline and utility giant, and one of the top dividend stocks, Enbridge (NYSE:ENB) is just starting to pivot higher from a 52-week low of about $35 a share. In fact, from a current price of $38.92, I’d like to see the stock challenge prior resistance around $46 near-term. Better, the company has paid out dividends for more than 67 years. Not only is that dividend safe and reliable, but Enbridge also continues to generate stable cash flow through long-term contracts with financially stable customers.
Enbridge’s wide network of pipelines is crucial to North America. The company moves 30% of the crude oil produced in the continent and transports 20% of the natural gas consumed in the United States. It also operates North America’s third-largest natural gas utility by consumer count,
as noted by Motley Fool contributor Aditya Raghunath.
ENB said its second-quarter revenue jumped 21% year-over-year in June to about $13.2 billion (in CAD) as it continues to benefit from higher oil and natural gas prices. In addition, in the first half of 2022, the company posted adjusted EPS of $1.51 a share, compared to $1.48 year over year. Distributable cash was up to $5.8 billion from $5.3 billion year-to-date. Better, management confirmed a distributable cash flow range of $5.20 to $5.50.
Medical Properties Trust (MPW)
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With a dividend yield of 10%, Medical Properties Trust (NYSE:MPW) is another hot dividend stock that is just starting to pivot from its recent 52-week low of about $10. From here, it could be set to soar, especially with healthcare REITs, a defensive investment against market volatility. After all, we need hospitals, with the healthcare industry being one of the largest stock market sectors. Plus, we have to consider that healthcare spending is expected to top $6.2 trillion by 2028, according to the Centers for Medicare & Medicaid Services (or CMS).
That’s all beneficial for Medical Properties Trust, which has invested in 447 medical properties and is now one of the world’s biggest hospital owners. It’s also been able to raise its dividend payments for the last eight years and may be able to raise them even more going forward.
In addition, as noted by TheFly.com,
Raymond James analyst Jonathan Hughes added Medical Properties Trust to the firm’s Analyst Current Favorites list and made no change to the firm’s Strong Buy rating and $18 price target. Additionally, Medical Properties would be one of the largest beneficiaries from any inflation/interest rate reversal due to their long-dated lease durations and higher leverage.
Global X SuperDividend ETF (SDIV)
dividend stocks Financial investment in bull market. dividend aristocrats
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Or, look at a dividend stock ETF like the Global X SuperDividend ETF (NYSEARCA:SDIV), which carries a dividend yield of 15.4%, and has made regular monthly distributions for the last 11 years. The ETF holds 108 stocks spread across mortgage REITs, financials, energy, materials, utilities, industrials, and consumer discretionary. Better, it’s starting to pivot higher from its recent 52-week low of $7.50.
Some of its top holdings include Imperial Brands (OTCMKTS:IMBBY), Omega Healthcare (NYSE:OHI), Starwood Properties (NYSE:STWD), Arbor Realty Trust (NYSE:ABR), Lumen Technologies (NYSE:LUMN), Annaly Capital (NYSE:NLY), Chimera Investment (NYSE:CIM), and dozens more.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.
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