Given the uncertainty in the market and an expectation of flat returns, there’s one place investors should be as the Federal Reserve raises rates. Let’s take a look… Volatility has spiked in advance of the Federal Reserve’s expected lifting of interest rates. When such volatility materializes, it usually signals uncertainty. Most of the professional investor class has yet to witness a market of rising interest rates. Text books will tell them how to proceed, but is that something to trust?
About the best we can surmise is more of the same, especially in the equity markets. That means a sideways trade in a very narrow range, with minimal gains—if any—coming over the next year. In reality, there are some certainties regarding the central bank’s actions. At the top of the list is a flattening of the yield curve. Bond investors are in a real conundrum under such a scenario. Do they sell short-term bonds and buy long term as the curve flattens? Perhaps, but a better way to go might be to migrate to dividend stocks. Here are two good ones to help you weather the storm: Kellogg Company (K) and Snap-on (SNA).
Source: InvestorPlace
Related Articles:
- How Much Money Will You Need To Retire?
- Seeding A Forest Of Dividend Growth Stocks
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
2 Dividend Stocks to Profit from the Fed Rate Hike
Posted by D4L | Monday, January 04, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
At times like this, it is tempting to jump on a bandwagon and buy up the growth stocks, aiming to capitalize on the broader trends. But is t...
-
In today’s near-zero interest rate environment, it’s been tough for investors looking for yield. There are many high-yielding dividend stock...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Three high dividend stocks to buy now feature a business development company (BDC), a national real estate investment trust (REIT) and the o...
-
The research analysts at Wells Fargo have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been ...
-
This past year has been the ultimate stress test for dividend stocks. Some companies failed miserably as they either slashed or suspended th...
-
Dividend stocks are a great choice for investors looking for a regular income stream. The best dividend stocks offer a growing payout in add...
-
The dividend-paying cleaning stocks to buy now amid the COVID-19 pandemic should benefit from heightened sanitary expectations by consumers ...
-
Rather than subject themselves to this risk, savvy investors can stabilize their portfolios by taking positions in reliable dividend growth ...
-
The best dividend stocks can generate excellent long-term returns. Even better, investors can buy high-quality dividend stocks when they are...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.