Buckle up investors. We could be in for a bumpy ride over the next few weeks as trade and political headlines heat up.
In times like these, investors flock to safer plays like dividend stocks. Let's check out how three of them that I've recommended recently are faring.
All three stocks seem like good picks for U.S.-Chinese trade tensions, as they have large exposure to the U.S. domestic market. By contrast, many large tech and consumer-products stocks have meaningful exposure to China.
That's concerning, as Washington recently initiated the second leg of anti-China tariffs by slapping duties on an additional $200 billion on Chinese imports. Sectors hit by the new levies include apparel, auto parts, food ingredients, furniture, paper products, refrigerators, toys and more.
China quickly responded not only by canceling expected trade talks, but also by placing tariffs on $60 billion of U.S. exports to China, including golf clubs, liquefied natural gas, medium-sized aircraft, metals, oil and tires.
Factoring in these latest steps, nearly half of all U.S. imports from China and more than 50% of American exports to China now carry tariffs. Should President Donald Trump take the next threatened step and put tariffs on an additional $267 billion of products, the levies would basically cover all U.S. imports from China. That makes three dividend stocks that I recently touted look attractive, given their large U.S. sales and relatively lesser Chinese exposure.
Altria Group (MO)
This domestically focused tobacco company (formerly known as Philip Morris) is up 1.5% since I wrote about it earlier this month. It also currently pays a 5.3% dividend.
The communications giant received ratings upgrades recently from UBS and Deutsche Bank. The stock also currently yields 6%.
Omega Healthcare Advisors (OHI)
This real estate investment trust's shares are up some 22% since I first touted it in April. But even after that climb, the company still boasts a hefty 8.2% dividend yield. OHI invests primarily in skilled-nursing and assisted-living facilities and has a U.S.-centric footprint.
This article was originally sent Sept. 27 to subscribers of TheStreet's Income Seeker, a product presenting the world of opportunities in fixed income and dividend stocks. Click here to learn more about Income Seeker and to receive articles like this each day from Nick McCullum, Hale Stewart, Jonathan Heller and others.)