Prognosticators have been calling for a 30% to 50% correction since the summer of 2015, so this year feels like a sneeze that just won't come.
And that was before Donald Trump was elected president or the Federal Reserve raised interest rates for the first time in almost a decade last December.
Although a correction may not be imminent, investors may still want to take precautions by investing in dividend-paying stocks. They are a smart bet for income in a low-yield and risky world.
Even in the case of a correction, the stocks discussed below will generate reliable income and present an opportunity to buy more shares at a discount to generate more income. These three real estate investment trusts offer big dividend yields of more than 8%.
1. Annaly Capital Management (NLY)
This REIT invests in various mortgage-backed securities covered by government-sponsored entities such as Fannie Mae and Freddie Mac. So far this year, the company's share price is up 5% at about $10 apiece.
Annaly Capital Management confirmed its 30-cent dividend in September for a nearly 12% dividend yield.
Although some sites might be reporting a dividend yield of about 10% due to annualizing the company's recent quarterly dividend of 26 cents, the REIT issued this dividend in order to prepare its books for the acquisition of Hatteras Financial.
With such a high dividend yield an income investor's primary concern is the sustainability of the dividend. Since the company's inception in 1997 it has always paid out its dividend, and because Annaly Capital Management is backed by GSEs it is a low-risk income investment.