5 High-Yield Dividend ETFs & Stocks To Buy Now

Wall Street has been experiencing wild swings in September. Earlier this month, the sharp sell-off in the technology sector led to bloodbath in the stock market and now the latest policy statement from the Federal Reserve sparks some caution.

Chairman Jerome Powell kept U.S. interest rates near zero and pledged to keep rates at lower levels until the end of 2023. The central bank will not increase rates until labor market conditions return to the “maximum employment,” and inflation has risen to 2% and “is on track to moderately exceed 2% for some time.” As such, it will continue to purchase at least $80 billion a month in U.S. Treasuries and $40 billion a month in mortgage-backed securities to make market movements smooth and “foster accommodative financial conditions.”

Though the U.S. economy has bounced back faster than expected, the central bank warned that the full recovery is still far away and will continue to face risks due to the ongoing pandemic.

Further, the volatility is expected to continue in the weeks ahead given elevated valuation concerns and election uncertainty. The rise in U.S.-China trade tensions and failure to have the new coronavirus aid will keep the returns at check. If we go be history, September is a weak month for the stock market. The seasonal phenomenon took a toll on the stocks as investors are more prone to selling than buying when they return from their summer vacations, trading volume after Labor Day is mostly bearish, many mutual funds have fiscal years ending Sep 30, window-dressing is rampant, and investors generally sell stocks to pay tuition bills for their kids’ private schools and colleges.

In this backdrop of a low-rate environment and market volatility, investors are in search of juicy yields. And nothing is better than the high-yield dividend ETFs & stocks.

Why High-Yield Dividend?

High-yield dividend ETFs and stocks play a defensive role in a portfolio and can reduce volatility in turbulent times. These products provide greater stability in the form of mature companies that are less volatile to the large swings in stock prices while ensure safety in the form of outsized payouts or solid yields on a regular basis, thanks to their strong cash flow streams.

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