Updated: August 24, 2016
Is it time to buy the higher yields that industrial stocks pay, or are their dividends and profits in cyclical trouble?
I’m talking about companies that make big physical products. Their yields of 3% and even 4% or more are 50% to 100% better than the broader market. Many of these stocks are paying at their most generous rates since the financial crisis.
I like buying stocks when their yields are near the high end of their historical averages. It’s an easy, effective contrarian income strategy. And most industrials fit the bill today.
But that flies in the face of another maxim – don’t buy industrials at the top of the business cycle. The global economy isn’t exactly booming, but we are seven years removed from our last recession here in the U. …