Every time the Federal Reserve (the Fed) cuts interest rates, investors tend to flock to the sectors they believe will outperform the most due to historical reactions and fundamental reasoning. However, this rate cut is a bit different than the ones experienced in the recent past, as the United States economy is more globalized and a bit slower than before.
The current market presents both opportunities and risks, with high valuations and economic uncertainty. Investors should focus on reliable, income-generating investments. Smart money strategies emphasize avoiding speculative growth and prioritizing stable sectors like infrastructure, healthcare, and energy, which offer long-term resilience. Dividend stocks with strong financial health, global exposure, and defensive characteristics provide a solid foundation for navigating market volatility and economic downturns.
With interest rates headed lower, now's the right time to buy dividend stocks for the long term. Some high-yield stocks are also growing their dividends steadily, paving the way for big returns.
Following the rapid rise in interest rates brought on by the Federal Reserve's unprecedented rate hikes two years ago, utility stocks languished.
SCHD and dividend growth focused strategies that are underpinned by blue-chip names provide an attractive way for retirement investors to capture income without completely sacrificing growth. Yet, in the current environment, that comes with a clear opportunity cost. Currently, there are many defensive businesses out there that offer higher yields already from the start, while keeping the growth trajectory into a high single digit level.
Brookfield Infrastructure has increased its dividend every year since its formation. The company expects to deliver 5% to 9% dividend growth over the long term.
Toyota is capitalizing on hybrid vehicles and innovative engine designs for a low-carbon future. Delta Air Lines increasing its dividend from $0.10 a quarter to $0.15 is a sign of confidence in the future.
Realty Income has made 650 consecutive monthly dividend payments. Brookfield Infrastructure expects to increase its high-yielding dividend by 5% to 9% annually over the long term.
Brookfield Infrastructure is a solid stock to own for all times. Nucor has fallen 30% from its highs, but that's not an uncommon occurrence for this steel industry giant.
The consensus price target hints at a 26.5% upside potential for Brookfield Infrastructure (BIP). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Brookfield Infrastructure's FFO grew 10% in the second quarter. The company expects to continue growing briskly in the coming quarters.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Brookfield Infrastructure Partners (BIP) have what it takes?