Coronavirus: 2 High-Yield Opportunities And 1 Stock To Avoid

When panic erupts, everything drops, without exception.
A lot of companies could be greatly affected by the spread of the coronavirus.
Be selective. Real asset investments with contractual cash flow offer the best risk to reward.
In the recent market correction, we have seen everything drop. Even blue-chip companies like Realty Income (O), Johnson & Johnson (JNJ) and McDonald’s (MCD) saw their share price crumble under the pressure.
It shows us once again that when panic erupts, there's no where to hide…

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At High Yield Landlord, we target an average 8% dividend yield, and the latest correction is making it easier for us to allocate capital. A lot of companies are slowly getting back into our buy range.
However, this does not mean that any high-yielding stock is a good investment. The coronavirus is a real issue, and as it continues to spread, a lot of businesses could greatly suffer from it. Entire supply chains are impacted. Consumers are sitting at home in quarantine. Schools are closing down. And travel is delayed.
So before rushing into the market, make sure that what you are buying is resilient enough to withstand this potential crisis.
As an example, Carnival (CCL), the cruise ship operator, is now yielding a historically high 6% dividend yield. Should investors buy it while it's cheap? Maybe, but there's no clear answer here. This is a highly-cyclical company that's heavily affected by the coronavirus fears. Unless a solution is found quickly, CCL is near certain to disappoint in 2020 and cheap can quickly get even cheaper.

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By simply going on their website, you can tell that they are getting desperate with a site wide 45% off deals to anyone who is willing to take the risk and book a cruise today.

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Therefore, this does not seem like a clear opportunity. You get a high yield, but results could crash in 2020. The lower share price is somewhat matched with deteriorating... Read more