Worried About Rising Interest Rates? This High-Yield Dividend Stock Can Help You Sleep at Night
The Federal Reserve is proving very serious in its attempts to slow inflation, and investors are feeling the pain. On Sept. 13, the Bureau of Labor Statistics (BLS) reported inflation of 8.3% in July, slightly down from June, but still at the highest levels Americans have faced in four decades. As a result, the Federal Reserve is expected to raise interest rates again when it meets on September 20-21. Since the BLS dropped the July inflation data, stock market indexes are down 5% or more, as rising rates mean more yield from bonds, making stocks less attractive at higher valuations.
What's an investor to do? One way to help bolster your returns is to buy the best high-yield dividend stocks, especially companies with a long track record of raising their payouts. Sure, you still have to deal with short-term volatility, but those regular paychecks make it easier to ride out choppiness, and over the long term, dividend increases offset rising rates and inflation, and help create meaningful wealth you can count on.
One of my top dividend stocks to buy right now is Texas Instruments (NASDAQ: TXN). With 14 dividend increases since 2010, it has a long record of financial strength and rewarding investors, and its future looks just as bright.
Source Fool.com
