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3 Stocks to Buy in June for Dividends and Stable Growth
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Today’s episode of Full Court Finance at Zacks evaluates the stock market and the economy in the early days of June during what’s been a wild few weeks for stocks. Amid all of the volatility and the economic unknowns, investors might want to consider buying strong dividend-paying stocks for the summer and beyond.
The stock market ripped higher on Thursday, resuming its recent momentum that began after the S&P 500 came within inches of a bear market on May 20. Last week, the S&P 500 and the Nasdaq posted big gains to end seven-week skids. In fact, all three major U.S. indexes jumped 6% or higher for the first time since November 2020.
Many of the same economic and market headwinds remain firmly in place, namely rising prices and the Fed’s rate hike push. The Russian invasion continues to hit the oil and energy market, and there are only now signs of some key Chinese cities returning to normal life following months of strict, zero-covid lockdowns.
The market appears to be cheering the fact that the Fed hasn’t yet said it will ramp up its tightening efforts beyond its current roadmap. Plus, Wall Street is perhaps starting to realize the central bank isn’t on autopilot and it will update its rate-hike efforts accordingly.
Despite strong consumer spending and soaring prices, there are signs that inflation might be starting to come down, or might have at least peaked. And investors continue to pour money into U.S. stocks during the downturn because they are bullish on the long-term outlook for the economy and the market. A lack of suitable alternatives to keep pace with 8% inflation is also fueling retail investors to buy stocks.
Of course, this doesn’t mean it’s time to just start racing back into growth-focused technology stocks, and calling a bottom is extremely difficult in real time. Instead, it might be best to search for stocks that pay a dividend and are poised to expand both their top and bottom lines during the current market turbulence.
The first stock up is Valero Energy Corporation (VLO - Free Report) . Valero’s core business remains refining and processing crude to turn it into products such as gasoline and other petrochemical offshoots. VLO is also expanding its renewable-focused efforts and its dividend and outlook remain impressive.
Next up is self-storage standout Life Storage, Inc. . Life Storage has been gaining momentum for decades as Americans continue to buy more and more things, from furniture to electronics. Life Storage’s valuation, outlook, and dividend payout are looking as strong as ever.
U.S. oil and gas powerhouse Chevron Corporation (CVX - Free Report) is the final stock on the list today. Chevron posted blowout 2021 results and oil prices have skyrocketed since then. CVX shares also continue to run higher. Most importantly, Chevron and many others in the space spent years cutting costs and now they are flush with cash and returning it to shareholders.
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3 Stocks to Buy in June for Dividends and Stable Growth
Today’s episode of Full Court Finance at Zacks evaluates the stock market and the economy in the early days of June during what’s been a wild few weeks for stocks. Amid all of the volatility and the economic unknowns, investors might want to consider buying strong dividend-paying stocks for the summer and beyond.
The stock market ripped higher on Thursday, resuming its recent momentum that began after the S&P 500 came within inches of a bear market on May 20. Last week, the S&P 500 and the Nasdaq posted big gains to end seven-week skids. In fact, all three major U.S. indexes jumped 6% or higher for the first time since November 2020.
Many of the same economic and market headwinds remain firmly in place, namely rising prices and the Fed’s rate hike push. The Russian invasion continues to hit the oil and energy market, and there are only now signs of some key Chinese cities returning to normal life following months of strict, zero-covid lockdowns.
The market appears to be cheering the fact that the Fed hasn’t yet said it will ramp up its tightening efforts beyond its current roadmap. Plus, Wall Street is perhaps starting to realize the central bank isn’t on autopilot and it will update its rate-hike efforts accordingly.
Despite strong consumer spending and soaring prices, there are signs that inflation might be starting to come down, or might have at least peaked. And investors continue to pour money into U.S. stocks during the downturn because they are bullish on the long-term outlook for the economy and the market. A lack of suitable alternatives to keep pace with 8% inflation is also fueling retail investors to buy stocks.
Of course, this doesn’t mean it’s time to just start racing back into growth-focused technology stocks, and calling a bottom is extremely difficult in real time. Instead, it might be best to search for stocks that pay a dividend and are poised to expand both their top and bottom lines during the current market turbulence.
The first stock up is Valero Energy Corporation (VLO - Free Report) . Valero’s core business remains refining and processing crude to turn it into products such as gasoline and other petrochemical offshoots. VLO is also expanding its renewable-focused efforts and its dividend and outlook remain impressive.
Next up is self-storage standout Life Storage, Inc. . Life Storage has been gaining momentum for decades as Americans continue to buy more and more things, from furniture to electronics. Life Storage’s valuation, outlook, and dividend payout are looking as strong as ever.
U.S. oil and gas powerhouse Chevron Corporation (CVX - Free Report) is the final stock on the list today. Chevron posted blowout 2021 results and oil prices have skyrocketed since then. CVX shares also continue to run higher. Most importantly, Chevron and many others in the space spent years cutting costs and now they are flush with cash and returning it to shareholders.