2 Ultra-High-Yield Dividend Stocks to Buy and Hold Forever

Later this year, the Federal Reserve is projected to begin reducing interest rates. While the exact number of rate cuts is still uncertain, this regulatory action is expected to stimulate a surge in high-yield dividend stocks, primarily because fund managers tend to aggressively purchase high-yield dividend stocks in low-rate environments. That leads these stocks to typically outperform the major benchmark indices when interest rates start to decline.

Which high-yield dividend stocks are best positioned to capitalize on this historical trend? Telecom giant AT (NYSE: T) and drug manufacturer (NYSE: PFE) appear to be deeply undervalued at their current levels. Furthermore, each stock offers a yield of over 6%, which should draw significant attention from fund managers once interest rates start to fall. Here's a brief overview of the advantages and disadvantages associated with each stock.

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Source Fool.com