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As Chicken Little would say looking at the current correcting market: "The sky is falling!"
But just because the "sky is falling" doesn't mean your profits have to…
You see, smart traders are always on the lookout for opportunities – in any market.
And this strategy is key to helping you do just that…
Collect Your Monthly Dividend Check with This Easy Step
Folks, it's no secret that the S&P 500 has dropped 13% since its high on Sept. 20. This drop has produced some great opportunities, if you know where to look. But instead of retreating to the sidelines, the timing is ripe to create a silver lining in what may appear to most to be a dark cloud.
I'm talking about dividends. Dividends are increasing as stocks drop and the timing is right to collect profits.
I'm a contrarian trader by nature, always on the lookout to go against popular opinion and grab opportunities that most don't even think about.
For example, on Dec. 17, the S&P 500 decisively broke below strong support at 2,600, cumulating in a 13% drop in the S&P 500 since the all-time high was reached on Sept. 20. As I wrote a few months back, this has been the longest bull run in history, both in terms of time and price. This correction has been long overdue and is providing us great opportunity to cash in.
So, what's the silver lining in a correcting and perhaps soon-to-be bearish market?
The answer… DIVIDENDS.
Dividend yield is calculated by dividing the dividend amount by the current stock price. Of course, as stock prices drop, dividend yields increase. Dividend yields are increasing across the board.
The opportunity here is to find the stocks that are not dropping or dropping less than the overall market, buy them, and collect the higher dividend yields.
Stunning: Tom Gentile has once again disrupted the financial industry – 15.8 billion calculations per second reveal daily double-your-money trade opportunities. Watch now…
Let's sweeten the deal and find stocks that are paying MONTHLY DIVIDENDS. Most stocks pay quarterly. There are many EFTs that pay monthly dividends. ETFs also have the advantage of not being affected by news, such as earnings announcement disappointments, that can cause stocks to tank.
I've dug into my scanners and found the following ETFs that pay monthly dividends that are either going up in this correcting market, or at least not dropping that much compared to the overall market action.
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.