Time to Rotate to High Yielding Industrials?

Many investors, such as Warren Buffet, praise defensive investing. As Buffett’s mentor Benjamin Graham recommended, investing with a margin of safety can be highly valuable in especially inflationary environments. Defensive investing in some sectors, like Industrials however, doesn’t usually provide the best returns in bull markets. As markets exit from the recession, it is not surprising to see that the risky Industrial stocks with low dividend yields benefit from the uptrend more than the Industrial stocks with high dividend yields do. However, we believe investors should be cautious of the upcoming inflationary environment. Like Jim Rogers and Ray Dalio, we are concerned about the Fed’s inflationary monetary policy, and we think investors should pick defensive stocks with high dividend yields in order to protect themselves against inflation. We compiled a list of top 30 US Industrial Stocks (the sector classifications are sourced from Finviz) by market cap and ranked them... Read more