BIPC - An Important Warning For High-Yield Dividend Stocks
2024-07-30 12:35:56 ET
Summary
- High-yield dividend stocks have been rallying on expectations of a Fed rate cut in September.
- However, I think the market may be overly optimistic.
- I share the main headwind likely facing high-yield stocks moving forward and how I am investing in light of this.
High-yield dividend stocks have been rallying recently on expectations that the Federal Reserve is likely going to cut interest rates in September. For example, the REIT sector ( VNQ ) is up by over 8.5% since July 1st. The Global X Super Dividend U.S. ETF ( DIV ) is up by over 6% during that span, as is the Schwab U.S. Dividend Equity ETF ( SCHD ), and the utility sector ( XLU ) is up by over 5.6%....
An Important Warning For High-Yield Dividend Stocks