Meme Stocks Surge Again: Why Boring Dividend Stocks Are Safer

The risky world of meme stocks (stocks that go viral on social media) is making headlines again, and experts are warning everyday investors to stay away.

What's happening now: • Allbirds, a shoe company that lost 98% of its value, suddenly jumped 300% after announcing it would focus on AI instead of sneakers • The Roundhill Meme Stock ETF (a basket of viral stocks) is up 32% this month • Robinhood Markets (the trading app popular with young investors) rose 21%

But here's the catch: meme stocks typically crash after surging. The meme stock ETF lost 53% in its first two years, while the broader market gained 2.1%.

The smarter alternative: Instead of gambling on viral stocks, experts suggest buying "antimeme" stocks - boring but profitable companies that pay dividends (regular cash payments to shareholders). A portfolio of these stable stocks gained 11.6% over six months, while the meme stock ETF lost 18.9%.

Seven safer stock picks include: • JPMorgan Chase (major bank) • Devon Energy (oil company) • Brown-Forman (owns Jack Daniel's) • Capital One (credit card company)

These companies have real profits, pay regular dividends, and won't disappear overnight. While meme stocks offer lottery-ticket excitement, dividend stocks provide steady growth - perfect for building long-term wealth without the gambling risk.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/from-allbirds-to-ai-the-meme-stock-frenzy-is-warning-you-to-own-this-quality-antimeme-portfolio-instead-6714bb16?mod=mw_rss_topstories