Fuzzy Politics? Think Dividends Until Clear, Says Strategist

The world is in a state of flux right now, with a fuzzy political picture and ongoing turmoil in various markets around the world. What to do? Look at stocks that pay dividends, says Joe Duran of United Capital Financial Advisers.

"In times like this get yield," he said on CNBC Thursday. "So the first thing, get stocks that pay you while you wait. Valuation really matters... there's a very big difference between the valuations that's priced into the stocks and what you're paying for the future growth. Our goal is to get paid on dividends and don't take risk."

But ...

But that's a only a strategy for the next few months, Duran cautioned, while political battles rage. Those fights will bring accompanying questions about future taxes on capital gains and dividends. As those questions come to the forefront, investors should be nimble.

"I think you'll see a very positive view of the Republican (front) runner until about June," he speculated. "And I think you're going to have two halves of the market that will look very, very different.

"Up until June you will have a lot of question marks, uncertainty, where the dividends work well. And then in the second half of the year, when there's clarity one way or the other, you actually want to shift out dividends probably and then start shifting to mid cap stocks which we think are really the engine for growth in the economy. Not so much small caps, which take a lot of risk."

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Disclosure information was not available for Joseph Duran or his company.