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Right before we entered February, the Fed delivered quite hawkish message relative to what was baked into the cake by the market. While it was not a surprise that there will not be any interest rate cuts
2 Stocks Yielding Above 10% That Could Be Subject To Dividend Cut
Summary
- The Fed's recent message on interest rates was less accommodative than expected, but the key essence remains the same - interest rates have peaked and are set to go down this year.
- Yield-seeking investors could expect lower yields as the discount rate shrinks, that should prompt investment in high-yielding stocks now.
- However, investors have to still be careful before picking high-yielding positions as some of them might cut despite the relatively rosy outlook on the interest rate end.
- In this article I elaborate on two names, which yield above 10% and that in my opinion are likely to reduce their distributions quite soon.
Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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