The onshoring trend in the US is gaining momentum, with Detroit seeing its population grow for the first time since 1957 and more companies considering moving operations back to America due to tariff wars. Contrarian dividend investors can take advantage of this trend with a “3-pack” of cheap stocks with surging dividends.
Industrial REITs, such as Prologis (PLD), are the pick-and-shovel plays of Industrial Revolution II. While PLD may seem pricey based on traditional measures, factors such as strong occupancy rates and potential for growth indicate that the stock is oversold. The stock yields 3.5% and is considered an income play, with a history of bouncing back after payout hikes.
Railways, like Union Pacific (UNP) and CSX Corp. (CSX), are also benefiting from the onshoring trend. UNP’s dividend growth is expected to pick up as shipping activity increases, with the stock currently behind the payout rise. CSX, with a growing payout and potential for increased revenue and volumes, presents an opportunity for investors with the stock down 12% since March. Both companies have room to boost profits as they catch up in operating efficiency.
Investors looking to capitalize on the onshoring trend can consider these cheap stocks with strong dividend growth potential. With the Industrial Revolution II gaining momentum and companies relocating operations back to America, warehouse owners and railways are set to benefit from increased demand for their services. By investing in these pick-and-shovel plays, investors can cash in on the surging dividends and potential for stock price appreciation.
The latest signs of an industrial renaissance in the US, such as the population growth in Detroit and the impact of tariff wars on company decisions, highlight the opportunities for investors to capitalize on the onshoring trend. By focusing on overlooked sectors like industrial REITs and railways, contrarian dividend investors can build a portfolio of cheap stocks with strong growth potential and attractive dividend yields.
As the onshoring trend continues to gather momentum, investors have time to cash in on the opportunities presented by companies relocating operations back to America. By investing in select stocks in sectors like industrial REITs and railways, investors can benefit from the surging dividends and stock price appreciation associated with the Industrial Revolution II. With careful consideration and strategic investment choices, contrarian dividend investors can position themselves to profit from the onshoring trend.
