Sell or Buy? Here’s What Louis Is Doing After “Liberation Day” In mid-March here, I (Tom Yeung) wrote about three stocks to sell on an escalating trade war. President Donald Trump was ratcheting his tariff rhetoric, so we highlighted three import-reliant firms to sell: - Deckers Outdoor Corp. (DECK)
- Abercrombie & Fitch Co. (ANF)
That’s because “eggs in the same basket” strategies cut both ways. During normal times, a firm like UGG boots maker Deckers saves millions by sourcing its sheepskin through just two Chinese tanneries. But much like a gambler betting it all on “black,” this high-risk, high-reward strategy also exposes importers to tariffs. Shares of Deckers have slumped 17% since our “sell” report, and the trio have fallen 12% as a group. More pain will come as tariffs materialize. However, InvestorPlace Senior Analyst Louis Navellier now sees the “Liberation Day” selloff as an opportunity to pivot into income stocks. These dividend-producing firms are typically excellent safe-haven investments, because they both generate income during tough times and still have upside potential for market recoveries. In 2008, for instance, two of these income-producing firms saw their stocks go up in the middle of the global financial crisis: Of course, dividend stocks aren’t the only way for investors to produce income. In a new presentation, Louis talks about his income-producing strategy at length. He recently revealed a revolutionary income strategy he’s been using that has paid out an average of roughly $9,000 per month for winning trades… in both bull and bear markets. And he’s inviting you to try it for yourself today. Think it’s impossible for you to collect more than $100,000 in extra income this year in this challenging market? In his new free presentation, Louis shows you how to do just that. In the meantime, I’d like to use this opportunity to revisit three “Dividend Kings” I introduced last December. Shares of two of these three firms have risen since then (the third is down just 3%), and they continue to illustrate why top income stocks remain the best defense in times like these… Dividend King No. 1: The Rural Retailer Dollar General Corp. (DG) is the largest of the three major American dollar stores. The company operates 20,000 locations spread across the country and targets rural communities too small to be served by big-box retailers. In short, DG is a relatively bare-bones convenience store that serves customers between their weekly shopping trips to larger towns. The strategy has worked. Over the past 25 years, Dollar General has built a reputation for low prices and used its immense cash flows to expand its footprint fivefold. The firm comfortably beat earnings estimates when it reported fourth-quarter results on March 13. The firm is also a cash cow thanks to the quick payback periods of stores. The company provides an ample quarterly dividend of $0.59 per share and has a healthy dividend coverage ratio of 2.4X. Even if net income sank 60%, the firm would still generate enough profits to cover its dividend. These facts help DG stand far apart from its closest rivals, Dollar Tree Inc. (DLTR) and its subsidiary, Family Dollar. The two smaller chains have struggled to match the enormous scale of Dollar General’s logistics network, and therefore pay no dividend. It’s not surprising that DLTR sank 13% the day after the “Liberation Day” announcement, while DG rose 4.7%. Going forward, fears of a potential 2025 recession should keep shares of Dollar General elevated. Betting markets now give a 50% chance of a recession this year, and Dollar General is better placed than its peers to be the “Walmart of 2008” that helps consumers – and investors – make it through. | Recommended Link | | | | In light of Trump’s tariff announcements, it’s time to forget outsourcing. This American chip maker is creating next-generation technology right here at home. Louis Navellier’s system, which spotted NVIDIA early, shows this company’s “Made in USA” advantage could deliver both economic growth and potentially explosive returns – despite the current volatility in the market. Click here to get the ticker. |  | | Dividend King No. 2: The Deep Value Drugmaker My No. 2 pick is a little trickier, given the complicated relationship with Robert F. Kennedy Jr. and the Department of Health and Human Services he leads. Last week, his department said it would lay off 10,000 workers, with sharp cuts at the Food and Drug Administration – the entity involved with green-lighting new drugs. HHS also announced the departure of the FDA’s top vaccine regulator, who had overseen Operation Warp Speed during Trump’s first term. This is obviously counterproductive to RFK Jr.’s goal to “Make America Healthy Again.” Cuts at the FDA will slow the drug approval process, making it even more difficult to get new therapies on the market. Still, Pfizer Inc. (PFE) has done remarkably well in the face of these headwinds. Shares have slipped just 3% since I wrote about the stock in December. Analysts have also maintained their 2025 and 2026 earnings estimates for Pfizer, indicating they don’t believe much has changed. Three key facts have kept Pfizer’s shares elevated. The first is Pfizer’s diversified revenue base. As I noted in December: Even without Covid-19 sales, Pfizer remains a diversified, well-run pharma company with multiple blockbusters spanning oncology, immunology, and more. The company also has one of the best pipelines of drugs in the approval stage in the industry, and a sales team that can turn promising drugs into blockbusters. This has helped Pfizer outperform single-therapy companies like DexCom Inc. (DXCM) and Novavax Inc. (NVAX). Even if one class of drugs (like vaccines) falls out of favor, PFE can rely on other areas to make up the difference. Second, Pfizer’s generous dividend has become a source of stability. Here’s more from December: The company’s dividend, which currently represents a 6.6% yield (160% higher than the average Dividend Aristocrat!), also remains safe thanks to a reasonable 1.7X coverage ratio – the ratio of dividends to net income. In other words, Pfizer’s profits are high enough that its earnings per share exceed its dividends per share by 70%. Finally, there’s Pfizer’s earnings. On February 4, management announced Q4 results that knocked expectations out of the park. Revenues surged 25% to $17.8 billion, beating estimates by 2%. Earnings per share quintupled to $0.63, a 34% beat. These results were driven by multiple drugs, including blood thinner Eliquis, migraine drug Nurtec, and oncology therapy Ibrance. In an interview with Barron’s, CEO Albert Bourla said he had met with RFK Jr. and remained “unbothered” by the current administration’s view on vaccines because of this wide base. It’s also notable that pharmaceuticals are exempted from the global 10% tariff rates, according to Annex II of the Reciprocal Tariff executive order. Together, that suggests Pfizer’s shares offer significant downside protection while leaving the door open to future gains. Its forward price-to-earnings multiples sits at just 8.3X, and a return to more “normal” multiples gives shares 30% upside. Dividend King 3: The Monthly Dividend Company Finally, there is Realty Income Corp. (O), widely regarded as one of the best-run real estate investment trusts (REITs) in America The San Diego-based firm takes a stunningly conservative approach to real estate investing by using only “triple net” leases with high-quality tenants. Under these terms, tenants are responsible for property taxes, insurance, maintenance, and utilities, on top of rent. This disciplined strategy has paid off. Realty Income has grown its revenue every year since 2009, and raised its dividend annually since 1995. It also pays its dividend monthly, making it attractive for those relying on investment income. Q4 earnings announced on February 24 were excellent. Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 26% to $1.2 billion, while adjusted funds from operations per share (a standard REIT metric that removes reinvestment dollars) rose 4% to $1.05 million. The latter figure is expected to grind 2% higher this year. Recent concerns over a recession should now make Realty Income’s shares appealing to regular investors too. The company continues to pump out a 5.7% dividend yield, and the potential of falling interest rates will make this figure seem even better relative to fixed-income instruments. Bond traders now expect four rate cuts by the end of 2025 (up from previous estimates of two to three cuts). The Downsides of Tariffs That said, we get that you’re worried about what happens next. We’re concerned too. After all, tariffs on physical goods are a blunt 19th-century tool for a 21st-century economy. You don’t flick a light switch and suddenly have a 50,000-person shoe factory running in rural Ohio. Nor do tariffs target outsourced services… software… or patents on foreign-developed drugs. The calculations of these rates have also been chaotic; the formula for “Liberation Day” tariff rates was simply to take America’s trade deficit with a certain country, divide it by imports, and halve that figure. Any country running a trade surplus with the U.S. would face a 10% tariff. As the Economist puts it, that’s “almost as random as taxing you on the number of vowels in your name.” Two of my other Dividend King picks this year have fallen double-digits on unexpectedly high auto tariffs. However, the disorganized rollout of these levies has created a moment for income-generating companies. The S&P High Yield Dividend Aristocrats Index has risen 2% this year, outperforming the 7% drop in the S&P 500 by a wide margin. And in a new presentation, Louis explains why now is the totally wrong time to sell everything and move to cash. That’s because he expects the current turbulence to cause heartburn and unlock powerful gains for investors. That’s where his Accelerated Profits service comes in. His Buy List is full of stocks that hold up when the market gets choppy – and sprint ahead when things turn around. That’s why his Accelerated Profits subscribers had the chance, over the past year or so, for gains such as… - 90.25% from Celestica Inc. (CLS)
- 95.13% from Builders FirstSource Inc. (BLDR)
- 114.49% from Targa Resources Corp.(TRGP)
- 187.28% from YPF Sociedad Anonomia(YPF)
- 604% from Vista Energy (VIST)
In fact, Louis’s system has identified the companies best positioned to thrive in this new era – stocks with superior fundamentals and persistent institutional buying pressure. In fact, Louis promises that he can show you how to make at least $100,000 cash with this strategy in the next 12 months… starting with a modest $7,500 investment in each opportunity… no matter what happens in the market. Go here to see for yourself. Until next week, Tom Yeung
Markets Analyst, InvestorPlace | 
