Should You Scoop Up These 3 Stocks Yielding More Than 5% in Dividends?
We may be in an investing environment marked and marred by low interest rates. It's less than accurate, however, to suggest no stock currently offers above-average dividend yields. International Business Machines (NYSE: IBM), Altria Group (NYSE: MO), and Southern Copper (NYSE: SCCO) are all paying out more than 5% of their price right now, and there's little reason to think those dividends are in jeopardy.
There's a flipside to this coin, however. That is, with the Federal Reserve's expectation for around eight quarter-point rate hikes between now and the end of 2024, the market's biggest dividend payers could also be its most vulnerable names. See, part of the adjustment for higher interest rates includes lower prices for dividend-paying stocks, effectively bumping up their dividend yield.
If that's what's holding you back from stepping into any or all three of these dividend stocks though, don't let it. These tickers might seem to be in dire straits, but there's more to the story.
Source Fool.com
