3 High-Yield Dividend Stocks to Buy When Interest Rates Are Rising
Inflation is a beast that's yet to be tamed. As a result, the Federal Reserve will likely continue serving up substantial interest rate hikes, and that could create volatility for the stock market.
To better position investors to thrive amid the current macroeconomic backdrop, a panel of Motley Fool contributors has identified three income-generating stocks that can help you deal with rising rates. Read on to see why they believe these high-yield dividend stocks are smart buys today.
Keith Noonan: Like most stocks, Verizon (NYSE: VZ) has some characteristics that aren't ideally suited to a rising interest rate environment. Perhaps most importantly, the company carries a lot of debt, and higher rates could create a drag on earnings if the telecom giant has to refinance some of its existing loans under new terms. With earnings growing at a relatively slow clip, it's also likely that the the company's next dividend increases will come in below the current rate of inflation.
Source Fool.com
