SUN - Want $3300 in Passive Income? Invest $10000 in These 2 High Yield Stocks and Wait 5 Years
The U.S. Federal Reserve is now walking a tightrope trying to strike a balance between ever-increasing inflation and sluggish economic growth. In March 2022, the U.S. consumer price index (CPI, a metric used to gauge inflation) rose year over year by 8.5%, the highest it has ever reached in the past 40 years.
Chicago Federal Reserve Bank President Charles Evans now believes that the Central Bank may have to hike interest rates above the neutral rate -- the interest rate at which the economy is neither stimulated nor restricted. However, several other Federal Open Market Committee members believe that the Federal Reserve will have to increase interest rates beyond the neutral rate, which can stifle economic growth.
This is a challenging time for growth stocks, which have been stock market darlings for several years now. Instead, retail investors will be better off by focusing on high-yield stocks, which offer some degree of protection against rising inflation. Retail investors will earn around $3,300 in dividend income over the next five years by investing $5,000 each in Medical Properties Trust (NYSE: MPW) and Sunoco LP (NYSE: SUN) .
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Want $3,300 in Passive Income? Invest $10,000 in These 2 High Yield Stocks and Wait 5 Years