"The disappointing August employment report showed that only 22,000 jobs were created. The number was well below estimates of 75,000, and it almost assures that the Federal Reserve will lower interest rates on September 17th for the first time since last December. It is also likely that the fed funds rate will be significantly lower than today's effective federal funds rate of 4.33%,"
"Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%)."
August payrolls rose by only 22,000, far below estimates, making a Federal Reserve rate cut on September 17th highly likely. The effective federal funds rate of 4.33% is expected to decline significantly and could fall below the long-term average of 4.61% by the end of 2025 given anticipated cuts. Investors seeking total return that balances passive income, growth, and inflation protection should prioritize solid ultra-high-yield dividend stocks. Dividends historically contributed about 32% of S&P 500 total return since 1926. A long-term study found dividend payers returned 9.18% annually versus 3.95% for non-payers. Five stocks paying at least 8% were identified.
Read at 24/7 Wall St.
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