Because investors remain concerned about the pace of economic recovery due to the resurgence of COVID-19 cases, an expected stock market correction makes high dividend-yielding stocks safer bets now. REITs, which by regulation pay high dividends, are expected to perform well in the low-interest-rate environment. Hence, we think it could be wise to bet on high-yielding REITs Saul Centers (NYSE:BFS), Granite Point Mortgage Trust (NYSE:GPMT), and CatchMark Timber Trust (NYSE:CTT). Let’s discuss.After five straight days of declines, today’s stock market performance suggests a revival of positive investor sentiment. However, concerns over the pace of economic recovery due to the resurgence of COVID-19 cases may not abate anytime soon. This, along with rising inflation, could lead to a more extensive stock market correction in the near term.
Given this backdrop, betting on high dividend-yielding stocks could be a safer option. Since real estate investment trusts (REITs) are known for paying high dividends, we think it could be wise to pick a few stocks from this industry because REITs typically benefit from a low-interest-rate environment.
High dividend-yielding REITs Saul Centers, Inc. (BFS), Granite Point Mortgage Trust Inc . (GPMT), and CatchMark Timber Trust, Inc. (CTT) possess solid fundamentals. So, it could be wise to bet on these stocks now.