2 Dividend Stocks That Could Outperform If the Fed Keeps Cutting
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2 Dividend Stocks That Could Outperform If the Fed Keeps Cutting
"Investing AT&T (T) carries significant debt and capital expenditure commitments while maintaining a 4.5% dividend yield. AT&T trades at 8.1 times trailing earnings after a 16.2% decline. Crown Castle (CCI) sold its fiber business to reduce interest expenses and refocus on cell towers. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests."
"Don't waste another minute; learn more here.(Sponsor) By Joey Frenette 9 minutes ago This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. 2024 Getty Images / Getty Images News via Getty Images The U.S. Federal Reserve is in rate-cutting mode, with two 25-bps interest rate reductions already in the books."
"And while the recent cuts could precede a handful more (there's still more than enough room for a handful of cuts, given easing inflationary pressures and concerns about the state of the economy), the Fed under chairman Jerome Powell has always been data-driven, even though subtle hints are typically more than enough to move markets. With no guarantee of another rate come the December meeting,"
AT&T faces substantial debt and capital-expenditure commitments while offering a 4.5% dividend and trading at 8.1 times trailing earnings after a 16.2% drop. Crown Castle sold its fiber business to lower interest expenses and concentrate on cell towers. The Federal Reserve has enacted two 25-basis-point rate cuts and could cut further, but future policy remains data-dependent. Employment trends and ongoing layoffs could increase the likelihood of more cuts. Lower rates would ease borrowing costs and potentially benefit dividend-paying companies, yet inflation risks and policy uncertainty leave timing and magnitude of relief unclear.
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