Stocks are facing a "real" yield problem as investors become more focused on rising real yields, which could result in lower stock prices and a hit to the P/E multiple.
Dividend investors often face a choice between high-yield stocks that offer more immediate income and low-yield stocks with faster dividend growth, but finding stocks that offer both can be challenging, with only a few rare "dividend unicorns" meeting these criteria, such as Arbor Realty Trust, Clearway Energy, NextEra Energy Partners, and VICI Properties.
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Wall Street analysts recommend dividend stocks as a defensive move against potential economic downturns, highlighting Brookfield Renewable Partners and Diamondback Energy as appealing options with promising outlooks.
Summary: Legendary investor Jeremy Grantham warns of a potential recession and decline in stock prices due to rising interest rates, but investors can protect their portfolios by investing in high-yield dividend stocks such as Sixth Street Specialty Lending (TSLX) and Crescent Capital BDC (CCAP), both of which have strong financial performance and attractive dividend yields.
High-quality dividend stocks, which have been market favorites in recent years, are currently not receiving much respect but now may be a good time to buy.
High-dividend stocks can provide retirees with a source of income and potential appreciation, and historically, higher-yielding stocks have offered better returns than dividend growth and the broader market.
The Southern Company, Oneok, and Public Storage are exceptional dividend stocks that have consistently paid stable dividends and increased their payouts, making them highly attractive for investors looking for reliable and growing income.
CNBC's Jim Cramer explains how to guard against market declines caused by the Federal Reserve and suggests focusing on "accidental high yielders" that continue to pay high dividends during market drops.
Investors may want to consider increasing exposure to dividend stocks, such as those in the S&P Dividend Aristocrats, as rising long-term interest rates have the potential to push the broad stock market down again.
Summary: Morgan Stanley recommends investors turn to dividend-paying stocks, as they have historically outperformed non-dividend stocks during market downturns. They have identified 26 dividend stocks that could see shares rise up to 85% in the coming months.
Dividend-paying stocks, such as Exxon Mobil, Coterra Energy, Brookfield Infrastructure Partners, American Electric Power, and Darden Restaurants, are being recommended as attractive options for investors due to their strong earnings, cash flows, and dividend growth.
Investors may be overlooking the potential of dividend stocks due to the current high yields on cash and bonds, but long-term investors have an opportunity to benefit from growth and income with quality dividend stocks that have the potential to raise their dividend payouts over time.
Investing in ultra-high-yield financial stocks such as AGNC Investment, PennantPark Floating Rate Capital, and U.S. Bancorp can provide investors with a reliable and substantial stream of dividend income.
Contrarian income investors are finding opportunities to "lock in" bigger dividend yields by investing in stock-focused closed-end funds, with many of these income plays paying Treasury-doubling 10% yields now, as consumer spending remains strong and interest rates remain manageable.
Buying dividend stocks, such as AT&T, Alliance Resource Partners, and Annaly Capital Management, can provide a safe and high-yield investment strategy for generating annual dividend income.
Stocks are currently on the defensive, but this temporary setback provides income-seeking investors with an opportunity to consider three dividend stocks - KeyCorp, Unilever, and BlackRock - that have resilient businesses and steady revenue growth.
The recent rise in bond yields is putting pressure on the stock markets, but mega-cap tech stocks like Nvidia and Amazon are considered strong defensive plays with significant upside potential according to market expert Jim Cramer and Wall Street analysts.
Investor sentiment is uncertain and volatile, leading to confusion among investors and a need for caution; billionaire investor Leon Cooperman predicts a downturn in the S&P 500 and suggests dividend stocks as a stable investment option, highlighting Energy Transfer and Arbor Realty Trust as high-yield dividend stocks that he trusts.
The current bear market presents great buying opportunities for dividend stocks, with many high-quality companies offering attractive discounts and starting dividend yields.
