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Most of the stocks in the S&P 500 (^GSPC -0.04%) pay dividends. The average dividend yield of this popular market index is 1.3%, as shown by the 1.3% yields of index-tracking exchange-traded funds such as the iShares Core S&P 500 ETF (IVV 0.00%) and Vanguard S&P 500 ETF (VOO -0.01%).

April's historic market volatility signaled a likely new bull market, with VIX 60+ events historically leading to strong 12-month and five-year returns (40% and 140%, respectively). Alexandria Real Estate is undervalued: A high-quality biolab REIT trading at 7.5X cash flow, with a sustainable dividend and upside potential. AES Corporation: Extreme discount, not a trap: Trading at under 5X earnings (historically 12.2X), AES offers a well-covered 7% yield.

Investing in dividend stocks can be a great way to collect dividend income. Several high-quality companies currently offer higher-yielding dividends.

The US-China trade deal reduces the risk of higher inflation. It should give the Fed more flexibility to cut interest rates. This would be very bullish for REITs and push their valuations to much higher levels.

I'm recommending two beaten-down REITs, American Assets Trust and Alexandria Real Estate, as long-term dividend plays with strong fundamentals and well-covered yields. Both stocks face near-term headwinds, but offer attractive entry points for patient investors seeking multi-year recovery and income. AAT is undervalued due to office exposure and California concentration, but has solid financials, a safe dividend, and multifamily growth potential.

With recent volatility, we have a new name to make the discussion this month, as well as a few names we don't see as often. This monthly screening focuses on dividend safety, growth, and consistency, narrowing down the universe of potentially attractive investments. This is only an initial screening to gather some potential ideas, and before making any investment decision, a deeper dive is required.

REITs should do fine overall in the coming years. But some specific REITs should crush the rest of the market. Peak pessimism leads to massive opportunities. I explain how you can win big when investing in individual REITs.

The 10-Year Treasury yield signals that the market does not expect a recession in the near term. Current yield levels suggest inflation expectations remain elevated compared to recent years. Investors should interpret the bond market as pricing in persistent inflation rather than imminent economic contraction.

US equity markets posted modest declines this past week after the Federal Reserve held rates steady and maintained its status quo "wait-and-see" approach, but acknowledged heightened inflation and labor market risks. Meanwhile, White House officials headed to Switzerland to begin high-level trade talks with China, which follows the announcement of the first major post-Liberation Day trade deal with the United Kingdom. Following its best two-week stretch since late 2022, the S&P 500 slipped 0.4% this week - extending its drawdown to around 8% from its mid-February record highs.

In Q1 2025, VICI, GLPI, Agree, and Realty Income generated positive investment spreads and total returns exceeding their cost of equity, making them attractive investments. EPRT and STAG have negative investment spreads and total returns below their cost of equity, making them less favorable investment options. This analysis uses cap rates and the weighted average cost of capital to estimate investment spreads. We also compare total returns to the cost of equity to measure accretion.