Investors can find income in these quality stocks, Berenberg says

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Income strategies are important in an era of high inflation, according to the firm.

Dividends may be harder to find these days, and that means investors should be discerning as they hunt for an income strategy, according to Berenberg. In fact, as the economy slows, investors can turn to dividend stocks to play defense. Berenberg economists are forecasting U.S. gross domestic product growth to slow from 2.1% in 2023 to 1.2% in 2024, strategist Jonathan Stubbs said in a note last week.

5 Surplus free cash flow, based on the difference between 12-month forward free-cash-flow and dividend yields and greater than 2% Here are 10 stocks that made the cut. The majority of the names on the list are in the energy sector. The largest company, Exxon Mobil , has a 12-month forward dividend yield of 3.3% and a surplus free-cash-flow yield of 4%, Stubbs said. The oil giant reported a second-quarter earnings miss in July, but its revenue beat expectations.

 

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