Investors are rushing to money market funds, investing almost $5 trillion in money markets and out of stocks. But I’ve found five dividend stocks better than a money market account! 🤑 FREE newsletter sharing market updates, trends and the most important news! https://mystockmarketbasics.com/dailybowtie
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With stocks looking shaky at best, the 4.6% yield on money market funds does look attractive against an average dividend yield of just 1.7% for stocks.
But instead of giving up all your upside return potential and locking in a return that is still below inflation, I’ve found seven dividend stocks that will put that same cash yield in your pocket plus the upside return…all with the safety you need!
For this list, I filtered for only those stocks with a 4.6% yield or higher. That way you get the same cash return you get from a money market, but then I also screened for dividend growth and long-term price return . From there, I narrowed the list to the seven with a safer outlook, themes and trends that I think will make these for stable cash flows and returns.
With that surge to almost $5 trillion in money market funds, I feel like a lot of investors may not understand the risk . These are not guaranteed safe. Understand that money market accounts you open at a bank, those are insured by the FDIC but the money market funds a lot of people are buying into, those are not. In fact, it was the collapse of several money market funds in 2008 that helped drive that financial crisis and almost caused another during the pandemic if the Fed hadn’t bailed them out .
My Investing Recommendations 📈
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
