ABT - These Dividend Stocks Are an Investor's Best Friend
2024-05-16 08:00:00 ET
Dividend stocks tend to struggle in high-interest-rate environments. The core reason is investors have an abundance of low-risk, high-yield income options when interest rates spike.
Conversely, fund managers have historically pivoted to top-tier dividend stocks when interest rates fall. The logic behind this trend is that dividend stocks ought to deliver superior returns to risk-free assets like U.S. T-bills in low-rate environments.
Which dividend stocks should investors load up on before the Federal Reserve starts to cut rates? Although there are scores of options, Abbott Laboratories (NYSE: ABT) and Medtronic (NYSE: MDT) have proven for decades to be an investor's best friend in terms of dependable dividend checks that keep increasing in size every year. Here's a rundown of the most crucial aspects of each company's value proposition, dividend mechanics, and risk factors.
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These Dividend Stocks Are an Investor's Best Friend