Stimulus Check: Here’s How to Maximize Your $1,200

Millions of Americans are set to receive cash from the government to help offset the economic challenges from coronavirus.

Individuals will receive as much as $1,200. Married couples will get as much as $2,400. And if you still have dependents at home, you’ll get an extra $500 per child.

Some folks absolutely need these checks to pay rent, buy food, take care of children, etc.

But what if you have the necessities covered? What should you do then?

The government is hoping you’ll spend it frivolously — buying things you don’t need to help boost the economy.

I, however, suggest you use your stimulus check to boost the economy another way — by maximizing your income.

So today I’ll tell you what you need to know to take advantage of the current market conditions.

We’ll talk about safety… the potential for a snapback rally… and how to make your money work its absolute hardest for you — even in today’s tough market!

What to Do With $1,200 Right Now

If you’ve been paying attention to what’s happening on Wall Street, you might think I’m crazy for suggesting you invest your stimulus check in the stock market.

After all, the stock market started diving as investors realized just how big the economic fallout from this virus would be.

And although we’re finally seeing the major indexes rally higher, you could think it still seems too early to say we’ve seen the worst of it.

While that might be true for some stocks, it’s definitely not the case for every stock.

You see, when investors were panicking, they sold everything without thinking.

So plenty of good stocks with stable businesses we dumped alongside risky stocks that will certainly be more challenged by this crisis.

But by now most of the panic is over. In fact, over the past week, we’ve started to see a bit more discretion in the market.

Stocks from great businesses with reliable profits are now moving back up faster than the more speculative stocks. That’s especially true when it comes to companies that share their profits with us by paying generous dividends.

And even though these stocks are trading higher, they’re still at a discount to where they were before the coronavirus bear market hit. So we can buy them at attractive prices.

Even better, since they have stable businesses, their stocks have less risk of trading lower. Plus they’ll continue to pay you growing dividend checks.

In short, you can use your $1,200 stimulus check to buy bargain-priced companies that offer low risk and generous payouts. You’ll not only receive new checks every quarter, but you’ll also see your portfolio grow as the stocks trade higher.

Of course, there are a lot of stocks out there… and just because a company pays dividends doesn’t mean it’s a stable, growing business.

So I’ve combed through the markets to find three names you can add to your stock portfolio today.

They all offer the right combination of safety, dividend payouts and growth potential that will ensure your coronavirus stimulus check works harder for you.

Stimulus Play #1: Verizon Communications (VZ)

On March 23, while most of the world was still fixed on the coronavirus threat, President Trump signed the Secure 5G and Beyond Act of 2020.

As you know, we’ve been watching the next generation of wireless technology — 5G — very carefully. It will dramatically transform the way we communicate and do business with each other — eventually touching every aspect of our lives.

The law Trump signed will accelerate the rollout — fulfilling the need for more bandwidth and connectivity as the coronavirus forces millions of Americans to work from home.

And one of my favorite companies on the front lines of 5G for consumers is Verizon Communications (VZ).

It’s one of the very few providers with a solution for setting up a 5G connection in your home. (I know because I’m looking into this service for my own home office.) And with 94.5 million consumer retail connections, Verizon has one of the world’s widest customer bases.

I’m particularly fond of the company’s strong financial position. It has $132 billion in annual revenue, which helps to fund its generous dividend. VZ currently pays investors a 4.3% yield.

So if you’re looking to invest your $1,200 check into one of the hottest growth areas in our economy — 5G — then VZ offers a tremendous opportunity for you to grow your income.

Stimulus Bonus Play #2: Pfizer Inc. (PFE)

When it comes to stable businesses with reliable earnings, it’s hard to beat Pfizer Inc. (PFE).

The blue chip biopharmaceutical company focuses on therapies that make a big difference in patients’ lives.

It has a particularly strong presence in the oncology market, helping doctors treat many different types of cancer. And it manufactures immunotherapies and anti-infective medicines that help prevent new infections or complications for patients who have compromised immune systems.

One of the most attractive things about Pfizer is its pipeline of new drugs that are being tested for approval.

As these drugs come online, Pfizer’s profits will naturally grow. And these new developments will not be affected by the coronavirus crisis.

So it’s a bit silly that shares of PFE traded lower over the past two months. But that just means you’ll pay a bargain price to lock in its reliable dividend.

Pfizer currently pays investors $1.52 per share each year. And when you compare the dividend to the current stock price (a bit above $35), you get a yield of roughly 4.3%. That’s much better than any savings account that I know of.

Best of all, the company has a nine-year track record of growing its dividend. And the company is expected to earn nearly double its current dividend in the year ahead. So there’s plenty of room for PFE to increase its dividend — meaning you will get paid more over time.

Stimulus Bonus Play #3: Procter & Gamble (PG)

When we look back on the coronavirus crisis of 2020, I think one of the more humorous memories will be the hoarding of bathroom tissue.

I’ll spare you the hundreds of TP jokes my kids have been passing on to me. I’m sure you’ve seen all the empty store shelves and done your fair share of scrounging around for “alternatives.”

Of course, that also means the companies that produce it and other consumer staples have seen a big spike in business!

One of my favorite companies in this area is Procter & Gamble (PG).

It has hundreds of well-known brands including Charmin, Bounty, Tide, Gillette, Pampers and many more. (Keep in mind, many people are predicting a coronavirus baby boom in nine months — which would be good for Pampers sales!)

PG also has a very wide consumer base, with products sold in more than 180 countries.

Best of all, the company has a 63-year history of growing its dividend payouts. In other words, through good times and bad, strong economies and recessions, PG has continued to generate reliable income for its investors.

And that’s not going to change any time soon. That’s why I love the idea of using some of your stimulus check to lock in a growing income stream from PG.

So there you have it, three great opportunities to put the money the government sends you to work.

Instead of frivolously spending the cash, you can use it to add income and wealth to your retirement for years to come!

Here’s to growing and protecting your wealth!

Zach Scheidt

Zach Scheidt
Editor, The Daily Edge
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Zach Scheidt

Zach Scheidt is the editor of Lifetime Income Report, Income on Demand, Buyout Millionaires Club, and Family Wealth Circle — investment advisories dedicated to finding Wall Street’s best yields. He brings to the table impeccable investment management experience and a solid record of identifying oversized payout opportunities.

Zach previously edited Income and Dividend Report, which...

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