MAIN - 2 High-Yield Dividend Stocks For A Recession
2024-01-31 07:15:00 ET
Summary
- We think that a recession is imminent.
- We expect high-yielding dividend stocks to outperform.
- We highlight two popular ~7% yielding dividend stocks to consider.
Co-produced by Austin Rogers
Dividend investors have been dealt a pretty bad hand in recent years. Numerous factors are weighing on various dividend stocks' performance.
- Steadily falling oil and gas prices have pushed down energy stocks ( XLE ), including midstream pipeline companies ( MLPX ).
- Slowing consumer spending on most categories is making growth harder to achieve for consumer discretionary companies ( XLY ).
- A weakening consumer also is translating into less ability for consumer staples ( XLP ) and discretionary companies to raise prices.
- Higher interest rates are weighing heavily on debt-dependent sectors like real estate ( VNQ ) and utilities ( XLU ).
- Higher rates also are pressuring the interest coverage of middle-market businesses that receive mostly floating-rate loans from business development companies ( BIZD ).