The trade dispute between the United States and Canada intensified after US President Donald Trump called Canadian Prime Minister Justin Trudeau "very dishonest and weak." Trump accused Canada of "charging mbadive tariffs" to US companies.
The tiff involved France and Germany, which criticized Trump's decision to withdraw from the G7 statement. Trump, meanwhile, threatened to double auto rates, which tarnished the G7's efforts to show a united front.
With Trump refusing to endorse the G7 release, it is likely that gains in the stock market will be limited. In fact, there is more uncertainty when Trump will meet with the president of North Korea, Kim Jong Un, in Singapore. In the midst of such ambiguity, investing in dividend aristocrats seems prudent, since they provide higher total returns with less volatility.
No advance at the G7 summit
Trump's sharp attack on Canada jeopardized the G7's efforts to keep it free and fair trade relations. He specifically accused Canada of imposing a 270% tariff on dairy products. This has forced many US dairy products. UU To arrive to Canada from the United States. Trump, in turn, has decided to apply more import tariffs to the delicate automotive industry.
Trump tweeted: "Prime Minister Justin Trudeau of Canada acted so meekly and peacefully during our meetings @ G7 just to give a press conference after I went saying," US tariffs. UU They were a little insulting "and" they will not push it. "Very dishonest and weak, our rates are in response to yours 270% in dairy!"
Meanwhile, Trudeau's office added that dairy rates were mainly a reaction to Trump's decision to impose levies on steel and aluminum imports from Canada, Mexico and the EU. In addition, protective measures such as Canada's milk tariff are very common throughout the world. So that we do not forget, the United States has imposed tariffs to protect several of its industries, from the tariff of 350% on tobacco to 160% on peanuts without shells.
Trudeau said Germany supported the "joint communique" despite Trump's decision to withdraw. France and Europe also continued to support the G7 communiqué and declared that anyone who leaves the summit will show its "incoherence and incoherence".
Trump-Kim historic summit, central bank meetings
In the middle of the G7 trade scandal, investors are watching the much-discussed meeting between Trump and Kim in Singapore. What is at stake is high as the summit marks the first time when both leaders will meet in person to reach a denuclearization agreement on the Korean Peninsula.
But investors should not have hope. Even if the meeting is successful, the stock market should prepare for more turns as this week awaits the outcome of the central bank meetings.
Time to buy aristocratic dividends
These uncertainties make paying dividends more attractive as they tend to outperform when larger markets face turns. But why the aristocrats dividends? This is due to the fact that this set of actions exceeds other dividend contributors in better quality businesses.
This category of actions reflects a sound financial structure and healthy underlying fundamentals. Such actions are immune to the vagaries of the market and have also obtained excellent returns adjusted to the risk in the last decade.
In fact, in the last 22 years, the aristocrats of dividends generated an annualized return of 12.9%, easily surpbading the 10.7 largest in the market. %.
6 Solid Choices
We have selected six of these dividend aristocrats to increase their profits. Such actions also possess a range of Zacks n. ° 1 (strong purchase) or 2 (purchase). The favorable range of Zacks should help these actions continue to increase this year.
Cintas Corporation ( CTAS – Free Report) provides corporate identity uniforms and related business services, primarily in North America, Latin America, Europe and Asia. Currently, the stock has a range of Zacks n. ° 2. The company raised its dividend for 34 consecutive years. Cintas has a dividend yield of 0.9%, while its five-year average dividend yield is 1.1%. The expected growth rate of the company's profits for the current year is 28.7%, higher than the estimated return of the Uniform and Related industry of 12.9%.
Roper Technologies, Inc. ( ROP – Free Report) designs and develops software and engineering products and solutions. The stock currently has a range of Zacks n. 2. The company has raised its dividend for more than 25 consecutive years. Roper Technologies has a dividend yield of 0.6%, while its five-year average dividend yield is 0.6%. The growth rate of the company's expected earnings for the current quarter is 20.5%, well ahead of the estimated overall industrial manufacturing output of 5.7%.
W.W. Grainger, Inc. ( GWW – Free report) distributes maintenance, repair and operation (MRO) supplies; and other related products and services that are used by companies and institutions in the United States, Canada, Europe, Asia and Latin America. Currently, the stock has a range of Zacks n. ° 1. The company raised its dividend for 46 consecutive years. W.W. Grainger has a dividend yield of 1.7%, while its five-year average dividend yield is almost 2%. The growth rate of the company's expected earnings for the current year is 30.5%, above the estimated performance of the Industrial Services industry of 25.6%. You can see the complete list of today's # 1 Zacks values here .
Aflac Incorporated ( AFL – Free Report) provides a voluntary health and life insurance products supplement. Recently, the stock has a range of Zacks n. ° 2. The company raised its dividend for 34 consecutive years. Aflac has a dividend yield of 2.3%, while its five-year average dividend yield is 2.4%. The expected growth rate of the company's earnings for the current year is 16.4%, in contrast, it is projected that the estimated profitability of the Insurance and Accident and Health industry will decrease 7.6%.
Praxair, Inc. ( PX – Free Report) produces and distributes industrial gases. The action, at this time, has a range of Zacks n. 2. The company has raised its dividend for more than 25 consecutive years. Praxair has a dividend yield of 2.1%, while its five-year average dividend yield is 2.3%. The growth rate of the company's expected earnings for the current quarter is 16.4%, more than the estimated performance of the chemical diversification industry of 12.2%.
Automatic Data Processing, Inc. ( ADP – Free report) provides business process outsourcing services worldwide. Currently, the stock has a range of Zacks n. 2. The company has raised its dividend for more than 25 consecutive years. Automatic data processing has a dividend yield of 2%, while its five-year average dividend yield is 2.3%. The growth rate of the company's expected earnings for the current year is 16.8%, better than the estimated performance of the Outsourcing industry of 7.7%.
The highest technological trend of all
Last year, it generated $ 8 billion in global revenue. By 2020, it is predicted that it will break into the ceiling at $ 47 billion. The famous investor Mark Cuban says that it will produce "the first trillionaires of the world", but that it should still leave a lot of money for the regular investors who make the correct exchanges early.
See the 3 best actions of Zacks to play this Trend >>