We hear it every single time the Federal Reserve raises rates, or even merely hints at it!
“Higher interest rates will crush dividend stocks – especially high yielders.”
Sounds scary – but it’s simply not true. And we’ll highlight five picks paying up to 9.2% that will prove just that.
Many high-yield dividend payers don’t care about the interest-rate boogeyman – and some actually outperform the market when the Fed lifts rates. Consider this research from index provider MSCI (MSCI) studying 88 years of market history up through July 2015 (emphasis mine):
“We found that, when rates were low to begin with, high-dividend stocks outperformed the market by an annualized 2.4 percentage points when rates started to go up.
On the other hand, when low rates fell under such conditions, the high-dividend stocks in our study actually lagged the market by an annualized 2. …