The Brexit issue has led to a huge sell-off in global markets for a second consecutive day. On Thursday, Britain voted to leave the European Union (EU). The Brexit issue has sent shockwaves across global markets.
Investors are continuing to pour money into safe haven assets such as gold and government bonds. Indeed, yields on U.S. Treasuries have dropped to their lowest level since 2012. Yields on Swiss and German government bonds have dropped into negative territory. The present environment has boosted the appeal of dividend stocks.
For high yields, Canadian investors should take a look at Potash Corp. (TSX: POT). While POT is facing a challenging business environment, the stock is currently offering very attractive yield. POT offers a yield of 6.22%.
POT has a decent track record when it comes to dividend payments. Recently, the company announced a dividend cut in response to the challenging business environment. Despite the dividend cut, POT is offering a very high yield.
The question is whether there will be further cuts to dividend. While the near-term outlook for Potash Corp. is challenging, the company has a strong financial profile to counter it. Indeed, the worse is probably over for Potash Corp. so investors can not just expect a healthy yield but also potential capital appreciation.
