Making Dividend Stock Predictions for 2017

Oh, crystal ball, what do you foresee in the future.  Dragons roaming the Earth?  Hmmm, I need a new crystal ball.  Magic Eight ball, what do you see happening in the future?  “Please try again latter.”  That wasn’t helpful.  Oh stars, what do you foresee in the future.  “The stars predict tomorrow you’ll wake up, do a bunch of stuff, and then go back to sleep.”  (Weird Al Yankovic, Your Horoscope For Today) I don’t how that helps predict the future.  Maybe I need to get this flux capacitor fixed?  Now, we will be making dividend stock predictions for 2017.

Ball and Fire
Ball and Fire

Anyway, I figured it would be fun to predict a few things for the future.  Why not, everyone is doing it.  “Of course I peed my pants, everyone my age pees their pants. It’s the coolest.” “You ain’t cool, unless you pee your pants.” (Billy Madison)

Small Dividend Stock Predictions for 2017

  • S&P 500: Will go from $2239 in 2016 to $2396, or 7% increase.
  • DOW (DJIA): The DOW will fall 7% before going through 20,000 points. We will close up for the year.
  • Federal Interest Rates: They will go up twice by 0.25% each time.
  • New Dividend Aristocrats: Realty Income (O), Stryker (SYK), People’s United Financial (PBCT), and Linear Technology (LLTC). If I had to pick 1, then Realty Income (O) is my number 1 pick.
  • Lose Dividend Aristocrats: 2 of the dividend aristocrats will lose their status. I am not sure which ones, but my guess is none of the ones I own or will own in 2017.
  • Taxes: We will hear way too much about US tax rates, and no major changes until at least 2018.
  • Beach: I will go to the beach this year. Ok, this one is cheating, I live within driving distance.  But with a new baby on the way, it will be easier said than done.
  • Unemployment: Will continue to trend down.

Bubble Predications

What fun are predications without some really bold guesses.  While the term bubble is a way overused term.  There is a 15% drop, it must have been a bubble (Rolls Eyes).   However, the next collapse is rent prices for renters for the following guesses.

  1. Too much added supply. Apartments are being built and houses are being converting into rental properties.
  2. With employment improving, people will get tired of paying rent and look for houses to buy.
  3. The defaults from the bankruptcies will start falling off of people’s credit reports.
  4. Apartment landlords are constantly trying to raise prices too much. At least with the ones I rented from in the past.

To be correct, I will need either vacancies to go up a bunch or rental prices to go down.  However, this is a lot of isolated markets.  So I am looking at the national average.  If I am correct, it should make the news.


Anyway

Those are my predictions for 2017.  This is my 1st post for predictions of the future.  I am not sure if they are bold enough.  With all the craziness of 2016, maybe a calmer year would be great.  Plus, the predictions are on the internet now, so they must be true.  “The internet does not lie.” (Captain Smek, Home) (Also known by my son as the bubble movie.)

What crazy prediction are you foreseeing for the future?  There is a comment section below to share your thoughts, and I predict you will.

Disclosure:

  • O – We own shares.
  • SYK, PBCT, and LLTC – We do not own shares

 

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8 thoughts on “Making Dividend Stock Predictions for 2017

  1. We are seeing a similar thing here in Australia. An over supply of apartments which will lead to lower rental yields for the high rent places like Sydney. It was a hot market to get into 5 years ago but it can’t keep growing like this or no one can afford to live there.

  2. LLTC most likely will not become an aristocrat this year, it is being bought out by ADI and believe the deal is set to close later this year. Looks like your O pick is still the best bet 🙂

  3. I was listening to NPR this morning and they are saying there is a housing supply issues. Not enough build-able land or permit issues. Maybe you’re right about the S&P will grow 7%. But I feel like we are due for another correction. Eitherway, I’m cash short so I don’t want to see any correction that I don’t have money to buy LOL 🙂

    1. I like having some cash on the sidelines ready for a stock market correction. Investing when the market is on sale is a good way for me to get stocks on the cheap. Although, the last correction was about 1 year ago, so I do not know if I would say we are long overdue. But I am sure one is coming, I just do not know when.
      Good luck investing, DM.

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