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Dividend lovers: 3 US stocks to boost your portfolio

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There is a bit of a problem for investors looking for stocks these days. Economists have warned of a recession in the United States, even as markets rebound in light of falling inflation. So what on earth are investors supposed to do, especially if they are interested in exposure to US equities?

First, don’t give up on US equities just because a recession is potentially imminent. In fact, now could be a great time to find solid companies that offer low-cost dividends. This could help you weather any downturn in the market and see your stocks soar on the other side.

And if you’re interested, these are the top three US stocks I would look for.

steel dynamics

steel dynamics (NASDAQ:STLD) is a solid option for those seeking both revenue and strong market share growth in a recovering market. The company is part of the booming materials sector among US equities, providing investors with access to diversified domestic steel while being a recycler of metals. It gives you cash flow based on an area of ​​the market that simply doesn’t shrink even in the face of a recession.

Steel Dynamics shares offer major value at the time of writing, trading at just 3.62 times earnings, plus a dividend yield of 1.66%. Moreover, stocks continue to climb, up 32% since the start of the year. But it’s also a strong long-term hold, with stocks up 683% over the past decade for a compound annual growth rate (CAGR) of 23% at the time of writing among US equities.

Rio Tinto

UK based Rio Tinto Band (NYSE: RIO) is another strong option in the materials sector, especially with copper looking for such high demand. This product is needed for everything, especially in a clean energy future. So it’s very different from investing in gold stocks that will simply fall back after a recession is over.

And Rio stock is one of the best options among US equities as it continues to grow both organically and through acquisition. Additionally, he has a madly dividend yield at 11.63% at time of writing! Additionally, you can lock this in while it trades high at 5.46 times earnings. Rio shares are down a slight 1.5% year-to-date, but have fallen sharply from 52-week highs. Over time, however, the shares have risen 149% over the past decade for a CAGR of 9.52% at the time of writing.

Real estate income

Finally, for those looking for stable income from their US stocks that falls between these two options, consider Real estate income (NYSE: O). The company has an extensive portfolio of high quality real estate offering both income and growth to investors. It offers long-term leases coupled with strong income and has increased its dividend every year for the past 27 consecutive years.

Real estate stocks have a 4.07% dividend, which is great. However, it’s not cheap. The company currently trades at 73 times its earnings among US stocks. But it’s clear that investors are looking for the stock to fight inflation, rising interest rates and keep it safe. The shares are up 3.5% since the start of the year, which is great. But the shares are even higher at 179% over the past decade. That’s a CAGR of 10.8%.