With a Fed rate cut almost certain, dividend stocks are returning to center stage. Falling yields on cash and bonds are driving demand for high-dividend stocks. These 10 undervalued U.S. stocks are combining earnings and upside, just as third-quarter results loom.
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While the market is currently focused on the Sino-American trade war and its many twists and turns, American monetary policy is preparing to make its comeback, with a return scheduled for next Wednesday, and a widely expected rate cut.
Investing.com’s Fed rate watch tool shows a greater than 98% probability for this scenario, and another rate cut is forecast for December with a similar level of certainty.
By making credit cheaper, rate cuts are fundamentally bullish for the economy and markets, and could help stock markets post a strong end to the year, especially as the positive seasonality of the fourth quarter also works in buyers’ favor.
However, rate cuts benefit certain types of stocks more than others. Dividend stocks, for example, often see high demand when rates fall, because investors seeking passive income are more willing to take “risk” on dividend stocks when rates on bond and money market investments are reduced to the minimum.
Furthermore, despite recent market records, the macroeconomic environment remains rather uncertain, which also justifies an interest in dividend stocks, which often have a stronger than average financial situation and a more stable shareholder base.
These 10 U.S. Stocks Combine High Dividends With Strong Upside Potential
With the help of Investing.com’s screener, we set out to find quality U.S. dividend stocks that are undervalued and therefore offer strong upside potential in addition to solid dividends.
Concretely, we launched a search based on the following criteria:
ATTENTION: Although the basic functions of the Investing.com screener are available to everyone free of charge, some of the criteria used here are reserved for InvestingPro and Pro+ subscribers.
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