2 Stocks Yielding 8%+ to Beat Rising Interest Rates

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Earlier this week, the Fed raised short-term interest rates for the third time this year, to a range of 2% to 2.25%. History suggests that higher rates can hurt dividend stocks in two ways:

First, companies that regularly borrow a lot of money (like REITs and utilities) now have to pay more to do so. Second, money market accounts, CD’s and short-term bonds are actually paying meaningful returns for the first time in a decade, offering a competitive alternative to dividends.

However, higher interest rates don’t have to sound the death knell for all dividends. By looking for the companies whose earnings expectations have actually been rising of late, you can sometimes find a healthy yield today and a business that is either resilient to, or even benefits from higher rates.… Read more

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Insider buying can be a useful tool in identifying stocks that may be ready to move. I typically don’t put much weight into analyst recommendations because they don’t have any skin in the game. But when CEOs and other executives – who know more about the company than you and I – put their money where their mouths are and make significant purchases, I listen.

And I’ve had my ear especially close to the ground over the past few weeks. Market chaos like what we’ve seen of late chums the water, turning insiders into frenzied buyers who think they can get a deal.…
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Many investors think they need to choose between current income and price upside. They don’t.

In a moment, I’ll highlight five stocks paying between 8% and 10% with 40% upside to boot.

Let’s face it – growth matters. It’s the best way to retire on a nest egg of just $500,000:

How to Stretch Your Investment on $500,000

The table above assumes a nest egg of half a million dollars that yields 8% a year, and absolutely no dividend reinvestment – here, you’re putting every cent of income into your pocket. Look how much that $500,000 expands over just a few years as you’re able to achieve more capital gains out of it. Even if you’re conservative and want to assume just 4% in annual growth out of your portfolio, that’s an extra $240,000 after 10 years – a much better position to be in than if you settled for a no-growth portfolio by selecting subpar high yielders …
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About Author

Brett

Hi, I’m Brett Owens – and I’m a financial junkie. My “problem” started incollege, when I got a little dose of the stock market – man, was I hooked…in no time, I was reading the Wall Street Journal religously.

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