2023-11-19 07:45:00 ET
Higher interest rates crushed higher-yielding dividend stocks in 2023. Rising rates made lower-risk alternatives like bonds more attractive. That weighed on the values of dividend stocks, increasing their yields to compensate investors for their higher risk profiles.
On the bright side, investors can now lock in even more attractive yields on some high-quality dividend stocks . Black Hills Corporation (NYSE: BKH) , Clearway Energy (NYSE: CWEN) (NYSE: CWEN.A) , and Devon Energy (NYSE: DVN) stand out to a few Fool.com contributors as top buys for income-seeking investors right now.
Reuben Gregg Brewer (Black Hills Corporation): Down 28% year to date, Black Hills Corporation should be appealing to investors looking for a reliable income stream. This electric and gas utility's 5.1% dividend yield (which is near 10-year highs) could probably be matched by a CD today, but what you'll have a hard time replacing is the over 50-year history of annual dividend increases. And with an average annualized dividend increase of roughly 5% over the past decade, it has outpaced the historical growth rate of inflation . In other words, unlike a CD interest payment, the buying power of Black Hills' dividend has increased over time.
For further details see:
These High-Yield Energy Stocks Got Crushed in 2023. Here's Why It's Time to Buy Them.