I am very convinced that the market will crash. However, I don’t know when this will happen. It might be 2021 or it might be several years out.
There is also something I am know: Investing in dividend stocks when the market goes down is a smart move. You can get great yields when you put money into the right dividend stocks that are selling for low prices.
Here are two dividend stocks that I especially believe are ones to buy as much as you can if the market crashes soon.
AbbVie already gives a big dividend yield of over 4.5%. And you can depend on the company’s dividend to continue to come and even grow. AbbVie is just one dividend increase away from getting put into the group of stocks we call Dividend Titans — S&P 500 stocks with at least 50 consecutive annual dividend boosts.
What could happen to AbbVie during a crash? Shares of the company would likely go down as they did during the covid sell-off last year. That would bring its dividend yield even higher. However, AbbVie would probably be one of the first to come back due to the power of its fundamental business.
To be sure, AbbVie has some uncertainties. The company’s top drug, Humira, has biosimilar competition in the country starting in 2023 with sales almost certain to decrease. The FDA has slowed its approval process for JAK inhibitor Rinvoq in numerous indications due to safety worries raised by Pfizer’s post-approval study of Xeljanz, which is a JAK inhibitor as well.
But Rinvoq has gotten FDA approval for treating rheumatoid arthritis. AbbVie is confident that it will get more approvals. The company also expects a fast return to total sales growth after a temporary lowering in 2023 due to expected sales decline for Humira. I don’t believe AbbVie’s dividend will be harmed — and during a market crash, it will be very attractive.
Easterly Government Properties
There are some dividend stocks that I would invest in right now without a second’s hesitation. Easterly Government Properties comes in high on this list.
It is not only due to Easterly’s dividend yield of 4.8%. What I really like is its fundamental business model that makes the dividend a very safe one.
The company leases out government properties. As of March 31 of this year, Easterly’s portfolio is 82 properties, of which 80 are leased to federal government agencies. Since then, the company has bought a building in Kansas City that is leased to the National Weather Service.
I can’t think of a better tenant than the federal government. And this makes this stock very safe during any possible stock market crash.
Author: Blake Ambrose