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20 Dividend Paying Stocks That Benefit From a Fed Rate Cut
The Federal Reserve is widely expected to cut short-term interest rates on Wednesday. Rates coming down should be a tailwind for dividend-paying stocks.Which ones, however, is always the question. "Dividend payers in the financials sector" benefit, says Wolfe Research strategist Chris Senyek, including "banks.". Short-term rate cuts can also help banks earn more money, lowering their cost of funding.That is a good place to start and the 10 banks in the Russell 1000 that analysts like the best are East West Banking, Western Alliance Bancorp, Wintrust Financial, Reinsurance Group of America, Webster Financial, FNB, Popular, Prosperity Bancshares, JPMorgan Chase, and First Citizens Bancshares.The 10 yield an average of 2.3% and have paid out a relatively safe 25% of net income as dividends over the past 12 months. The average Buy-rating ratio for the 10 -- which is the number of Buy ratings divided by the total number of ratings -- is about 81%. The average Buy-rating ratio for stocks in
20 Dividend Paying Stocks That Benefit From a Fed Rate CutDisclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.