|
Six IBD 50 Stocks Bear Gifts Even As Santa Claus Rally Fizzles Investor's Business DailyHere's what the first two trading days of January predict for stocks in 2025 MarketWatch'Santa Claus rally' fails to materialize. What it means going forward CNBC2025 investment opportunities coming off of the 'Santa selloff' Yahoo Finance
|
|
The dividend yield on the S&P 500 has been hovering near its lowest level in roughly two decades for some time now, and while it's starting to move higher, it's still at a paltry 1.7%. So what are yield-hungry investors left to do?
Thankfully, there is no shortage of high-paying dividend stocks on Wall Street. And in a time of market volatility, like we've seen throughout 2022, quality income-paying names can be used as a defensive play in portfolios.
"We have continued to highlight the importance of dividends in the current backdrop, where we have seen wide performance spreads between dividend payers versus non-payers," says Jill Carey Hall, equity and quant strategist at BofA Securities. Looking specifically at small-cap stocks, Carey notes that "dividend yield has been the best-performing long factor" for the year-to-date.
However, not all dividend stocks are created equal, and it can be a dangerous practice for investors to simply chase yield. Many times, a company's high yield can be a sign of trouble in its underlying business.
With that in mind, we've selected 10 high-paying dividend stocks with yields of 5% or more. However, we didn't just randomly pick names, though. To put together a list of quality firms, we looked for companies with solid fundamentals, generous yields and backing from the analyst community. Investing in sturdy dividend stocks remains a favorite strategy on Wall Street and these ones are worth a closer look.
SEE MORE 16 Dividend Kings for Decades of Dividend Growth
Data is a
|
|
The Federal Reserve was top of mind for investors Monday, with the central bank's next policy decision - a likely 75 basis-point rate hike - due out Wednesday. This led to back-and-forth trading for much of the session, though the major market indexes ultimately ended in positive territory today.
SEE MORE 16 Dividend Kings for Decades of Dividend Growth
While the economic calendar is relatively thin over the next few days, Wall Street will see a round of housing data in the leadup to the Fed announcement. Today, that was the release of the National Association of Home Builders (NAHB)/Wells Fargo housing market index, which showed builder confidence fell 3 points in September to 46, its lowest level since spring 2020. This was the ninth straight monthly drop in the index, and came amid a "combination of elevated interest rates, persistent building material supply-chain disruptions and high home prices [that] continue to take a toll on affordability," the report stated.
"We expect the other housing market releases this week (housing starts, existing home sales and building permits) will show similar weakness," says Raymond James economist Giampiero Fuentes. "Bad news continues to be good news for the Fed, as it indicates its tightening cycle is working to slow demand."
Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.
In terms of sector performance, materials stocks ( 1.7%) were the leaders. Healthcare (-0.5%), meanwhile, lagged as COVID-19 vaccine makers like Pfizer (PFE, -1.3%) and Moderna (
|
|
