Interest Rates Are Going Lower: 4 Quality 7%+ Dividend Stocks to Buy Now

"Interest rate cuts make high-yield dividend stocks more attractive by reducing competition from fixed-income investments and lowering companies' borrowing costs, thereby supporting both dividend sustainability and stock price appreciation. At 24/7 Wall St., we attempt to evaluate the underlying business fundamentals and dividend sustainability before recommending companies to our readers. Sometimes, remarkably high yields can indicate financial stress rather than opportunity, as was the case with Walgreens this year."

"There are over 6,650 publicly traded stocks in the United States, so not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database for companies yielding at least 7% with solid dividend coverage."

"High-yield dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. Altria Group Inc. ( NYSE: MO) offers value investors a 7.12% dividend yield, a compelling entry point, and a generous dividend. The company manufactures and sells smokable and oral tobacco products in the United States."

Interest rate cuts raise the appeal of high-yield dividend stocks by reducing competition from fixed-income investments and lowering corporate borrowing costs, which supports dividend sustainability and potential stock price appreciation. Evaluation of underlying business fundamentals and dividend coverage is used to assess suitability before recommending high-yield stocks. Extremely high yields can signal financial stress rather than opportunity, as evidenced by Walgreens. A screen for U.S. stocks yielding at least 7% with solid dividend coverage identified four well-run companies that appear timely buys, with Buy ratings from top Wall Street firms on three. High-yield dividends provide a reliable source of passive income. Altria offers a 7.12% yield and sells smokable and oral tobacco products in the United States.

Read at 24/7 Wall St.