Dividend Stocks May Take a Hit

While it seems reasonable that the fiscal cliff is probably priced into the market, though we can’t say how much, one area where anxiety about the fiscal cliff is likely to appear again is in the dividend bearing stocks, names like Bristol-Myers Squibb (NYSE:BMY), H.J. Heinz (NYSE:HNZ), Conoco Phillips (NYSE:COP), Waste Management (NYSE:WM), Harris Corp. (NYSE:HRS) and Aflac (NYSE:AFL).

That presents some very interesting opportunities for traders but don’t make the mistake of shorting the strongest of these names. In volatile markets, many traders go to cash and sit on the sidelines – and their portfolios suffer for it. But investors’ fears are a powerful tool that can be used to trade the VIX for huge profits.

Source: InvestorPlace

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