Play 'Defense' In This Market With These High-Yield Dividend Stocks

Momentum stocks have been hammered in the past couple of weeks. The rest of the market has held up fairly well, but as we get into the "Sell in May and go away" time frame, it might be time to play "defense". The market appears to be rotating out of pricey momentum stocks and into sectors that provide value and generous dividends. If there is a market decline, investors who are in defensive sectors, and stocks that provide value and solid yields will likely be well-positioned. With this in mind, here are some stocks that offer value, rebound potential, and strong yields:

Apollo Investment Corporation (AINV) is a business development company, or "BDC". This company announced a secondary offering of roughly 12 million shares in late February, and the stock dropped on that news. The other reason why this stock has been weak seems to be due to concerns that business development companies will be excluded from the Russell Index when it is re-balanced. Seadrill is a leading provider of offshore drillships, jack-up rigs, semi-submersible rigs, and tender rigs. It has a very modern fleet, which means its equipment is likely to remain in high demand. Other companies in this sector with older fleets are more likely to be impacted by softening rates, because old equipment requires more maintenance and can be less efficient. Seadrill is one of the largest companies in this industry, and it continues to grow.

Source: Seeking Alpha

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