All it takes is a few days of falling stock prices – and a government shutdown – for investors to hit the panic button.
I can’t tell you how many emails we’ve received from concerned investors, asking where to invest to protect and grow their wealth amid such uncertainty.
The answer is simple: The very same place you’d invest your money during booming markets to safely protect and grow your wealth…
[ad#Google Adsense 336×280-IA]Dividend stocks.
As I’ve shared before, in good, bad and indifferent times, dividend stocks consistently outperform.
The fact that the current selloff is a result of a rare government shutdown (the last one occurred in 1995 during Bill Clinton’s presidency) doesn’t make the situation or outlook for dividend stocks any different.
Bank on it!
And here’s a specific opportunity to help you do just that…
Healthcare to the Rescue
Forget about the government shutdown for a moment.
October 1 also marked the first day of the nationwide healthcare insurance exchanges.
Glitches or not, it’s helping buoy the entire healthcare sector. In fact, healthcare is one of the standout performers over the last few days – up about 1.2%, while the broader market is down fractionally.
Granted, that’s an awfully short timeframe to compare results. But I expect that outperformance to continue, particularly for Cardinal Health (CAH).
Originally founded in 1971 as a food wholesaler, Cardinal has evolved into an $18-billion healthcare services company, thanks a string of wise acquisitions. As such, it’s now perfectly positioned to benefit from the millions more Americans who’ll be seeking medical care in the coming years.
Thanks to its strong growth, Cardinal is filtering cash back to its shareholders.
In fact, not only has the company grown its market share and revenue by leaps and bounds, management has also steadily increased the dividend payment for 25 years – and counting. And this pattern shows no signs of stopping in the near future, either.
The Contracts Keep on Rolling In
Last week, Cardinal was one of a few non-defense-related companies to be awarded multiple lucrative Pentagon contracts.
On September 24, it received a contract to supply “specific pharmaceutical items” to the U.S. Army, Navy, Air Force, and Marines, worth $290.6 million.
Two days later, it received another government contract extension worth $41 million.
On top of the government work, the company is also uniquely positioned to capitalize on the push to provide in-home medical care whenever possible, where it’s more affordable.
How so? Again, credit a timely acquisition.
In March, Cardinal acquired the privately held leading provider of medical supplies to patients in the home, AssuraMed.
Bottom line: With America aging, Obamacare rolling out, government contracts aplenty, and a solid history of stout performance and increasing dividend yields, Cardinal Health is as close as you can get to a sure bet in an extremely unsure economy.
Safe investing,
Louis Basenese
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Source: Dividends and Income Daily