High-Yielding Stocks Outshine Treasury Yields
As the Federal Reserve continues to shape the economy, investors are on the hunt for lucrative returns. With 10-year Treasury yields hovering around 5%, some may be tempted to invest. However, a closer look at the S&P 500 reveals seven stocks offering yields above 7%, making them an attractive alternative.
Walgreens Boots Alliance Leads the Pack
Drugstore giant Walgreens Boots Alliance takes the top spot with an impressive 8.5% dividend yield, the highest in the S&P 500. What’s more, its stock has surged 27.5% this year, making it a rare gem in the index.
Ford Motor and Altria Group: High Yields, Sluggish Stocks
Ford Motor and Altria Group also boast impressive yields, 8.1% and 8%, respectively. However, their stock performances have been lackluster, with Ford down nearly 2% and Altria down almost 3% this year.
LyondellBasell: A Rare Bright Spot
LyondellBasell is the only other stock yielding over 7% with a positive stock performance, up 1.2% this year. Its 7.4% dividend yield makes it an attractive option for income-seeking investors.
The Trump Economy and the Federal Reserve
Since the Federal Reserve cut interest rates in mid-September 2024, the 10-year yield has risen from 3.60% to 4.76%. This shift has led to a renewed focus on high-yielding stocks, offering investors a chance to capitalize on solid income opportunities.
A Shift in Focus
As the economy continues to evolve, investors would do well to explore these high-yielding stocks, which offer a more attractive alternative to Treasury yields. With the right strategy, investors can navigate the current market landscape and reap the rewards of these lucrative investments.
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