A 9% Dividend Yield for the Taking

You may be wondering if last week’s crash in Japanese stocks ever happened.

The market has taken it in its stride, and it appears we are back to business as usual.

But the underlying cause of the volatility remains.

The US economy may be slowing faster than many expect as a result of interest rates remaining at a restrictive level for the past few years.

If that is the case investors should consider how they can position themselves to take advantage of opportunities.

In today’s Closing Bell video, I focus on the buy signal in US 10-year bonds.

Past cycles have seen interest rates drop rapidly once the cutting cycle begins. It is not always a bullish outcome for stocks. That’s because something has usually broken as a result of high rates, and the US Fed cuts rapidly to stop an implosion (for example in 2000 and 2007).

Therefore, a more defensive posture is to look for solid dividend yields.

In the video below I show you a $3.6bn retail group that is paying a fully franked 6.3% dividend yield that grosses up to 9%!

I don’t show it to you as a trade but as an example of the type of opportunities that are out there at the moment.

If rates do follow the same path as past cycles and come off the boil rapidly a 9% yield could look spectacular. Especially if a drop in rates ignites the retail sector and revenues grow more rapidly than the current low levels expected.

I also have a look at the possible weekly buy signal in US stocks which would increase the odds there is more upside to come in the short-term.

As I show you in todays video, the volatility last week didn’t cause that much damage to the charts. But the underlying problems with US growth could cause further volatility ahead if data continues to disappoint.

If you found today’s Closing Bell insights helpful and want to dive deeper into the strategies I use to protect and grow capital, I highly recommend checking out THE LESSONS: SIX SECRETS to ‘beat-the-market’ trading.

This resource distils the six key principles that have guided my trading over the years, helping members achieve an average annualised gain of 25%—even during some of the most unpredictable market conditions.

By understanding these core rules, you’ll gain a stronger foundation to navigate market volatility and seize opportunities, just like the ones we discussed in today’s video.

Click below to learn more:

THE LESSONS: SIX SECRETS to ‘beat-the-market’ trading

Regards,