"September has a habit of making investors glance twice at their statements. The post-summer calm often gives way to choppy price swings, and this year, it's increasingly tempting to seek refuge in dividend stocks. These stocks have outperformed during previous rate cut environments, and if they are blue chips, it makes them even more attractive. Long-term Treasuries currently yield a hair below 5%. Bonds are considered to be risk-free, so many don't bother entering the equity market for the extra yield."
"Verizon Communications (VZ) seems to be making a quiet transition from being a debt-ridden, boring telecom company to a key piece of the AI supply chain. VZ stock declined by over 40% from its late 2020 peak to its trough in 2023. Much of that pain was due to elevated interest expenses and rising interest rates. The company still managed to stay profitable, and not only pay dividends, but increase them."
September volatility often pushes investors toward dividend-paying blue-chip equities. Dividend stocks have historically outperformed in rate-cut environments, making high-yield, stable businesses attractive for income. Long-term Treasuries yield just under 5%, which may encourage yield-seeking allocations into equities when rates decline. Verizon Communications is positioned as a potential AI-supply-chain play after a more than 40% decline from its 2020 peak, driven partly by interest-cost pressure. Verizon remained profitable, raised dividends, posts a 6.13% yield with a 58% payout ratio, showed 1.9% annual dividend growth over three years, and reported notable cash flow despite interest losses.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]