Investors love dividend stocks, especially the ultra-high-yield variety, because they offer a significant income stream and have massive total return potential.
The bigger-than-expected cut of the federal funds rate the Federal Reserve dropped in September is just the start of a long process, which likely will see the benchmark rate at 3.25% by early 2026. In the meantime, passive income investors are starting to move to dividend stocks in a big way.
While the bond market and Wall Street have anticipated the rate cuts, and dividend stocks like utilities have been snapped up all year, income investors are looking to the top ultra-high-yield stocks that can replace junk bonds, utilities, and other passive income investments that have been bid higher in 2024. We have three top companies Wall Street loves that all pay at least a 13% dividend yield.
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