Batten Down the f*#@! Hatches, or ...

How to Find a Little Calm in the Market Sh*tstorm.

This crazy intensified market activity brings out all sorts of speculation and conjecture and crystal-balling. It would make Nostradamus blush. (As a side public service announcement, 8 out of 10 local psychics strongly discourage balling your crystal).

But in among all this noise, a few far-sighted folks still in control of their faculties are presenting an alternate perspective. Take heart plucky DIY Dividenders, the ship you are boarding has an even keel and a steady course through this market maelstrom.

According to John Heinzl from the Globe and Mail….here is a brief summary of the sh*tstorm:

“First, the coronavirus slashed share prices. Now, it’s triggering dividend cuts, prompting investors to look for sectors that offer reliable income streams in times of trouble.” With major parts of the economy grinding to a halt and no visibility on how long the shutdown will last, many companies are reducing or eliminating dividends to conserve cash as the pandemic shows no signs of slowing.”

And now, for some bright-side (whew…there always is a bright side – it is a universal law especially for DIY Dividenders):

“Even as the number of companies cutting dividends grows, analysts say certain sectors offer relative safety for income seekers. Canadian banks, for example, are unlikely to cut their dividends given their strong capital levels… …Other sectors that will likely be spared from dividend cuts include telecom companies, utilities, pipelines and power producers, analysts say. These sectors benefit from contracted or regulated cash flows that provide stability in challenging economic times.”

See the full article here.

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