Introduction – Growth Stocks
As 2022 begins we find the stock market as measured by the S&P 500 extremely overvalued and vulnerable to rising interest rates. Historically, rising interest rates are bad for stocks generally. Currently, inflation is running rampant and at all-time highs. The general antidote to fight inflation is to increase interest rates. The Federal Reserve has indicated that interest rates could be risen 3 times or more in 2022. This makes the market trading at nosebleed valuations vulnerable. However, there are sectors and industries that are not trading at extreme levels. As I have often stated, it is a market of stocks not a stock market. With this video I will look at 9 dividend growth stocks that are high-quality, high yield, and available at unjustifiably low valuations. Furthermore, the stocks in this subsector are interest-rate sensitive. As interest rates rise, historical analysis has shown that the P/E ratios of companies in this industry rise in direct proportion to the increases.
In this video I will review: Aflac (AFL), MetLife (MET), Principal Financial Group (PFG), Prudential Financial (PRU), Great-West Life (GWO) iA Financial (IAG), ManuLife Financial (MFC), Power Corporation of Canada (POW), Sun Life Financial (SLF)
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Disclosure: Long AFL, PFG, PRU, MFC at the time of writing.
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.