We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 High Yield Stocks to Buy as Rate Hike Expectations Collapse
Read MoreHide Full Article
Federal Reserve has become conservative about increasing interest rates as the targeted inflation rate is yet far from achievable. The U.S. monetary policy is likely to be more accommodating owing to headwinds like economic slowdown in China, poor U.S. labor market conditions since the release of disappointing job report in May and weak energy prices.
CME Group's FedWatch Tool predicts that probability of the Fed rate hike is only 4% for Jun 15, 2016. Until Dec 14, 2016, the rate hike expectations are below 50%.
Stocks Worth Investing In
We believe that real estate investment trust (REIT) companies or stocks from the utilities or telecom sector make good investment options. These companies have heavy debt load but capable of offering highest dividend yields in the market, supported by their colossal size.
Thus these companies are the best bets amid low interest rates, which are not likely to increase in the near term. Given that the interest payments for loans borrowed to run large scale corporate operations would be lower, investment in these stocks will undoubtedly be a prudent choice.
Zacks to the Rescue
With the help of the Zacks Stock Screener, we have zeroed in on five stocks that carry a Zacks Rank #1 (Strong Buy) or #2 (Buy), and also have a dividend yield of over 4.5%.
Our Picks
Vivendi SA (VIVHY - Free Report) conducts services within media and content businesses primarily in France and the rest of Europe. The company also extends its services in the U.S. and globally. This Zacks Rank #2 stock from the Utilities sector has a dividend yield of 13.31%.
Cherry Hill Mortgage Investment Corp. (CHMI - Free Report) is a renowned residential real estate finance company. The organization invests in, finances and conducts residential mortgage assets in the U.S. The company holds a Zacks Rank #2 and has a dividend yield of 12.4%.
Eagle Point Credit Company Inc. (ECC - Free Report) is a type of closed ended fund that is managed and launched by Eagle Point Credit Management LLC. The company invests in fixed income markets of the U.S. The Zacks Rank #2 stock from the Finance sector has a dividend yield of 14.1%.
Orchid Island Capital, Inc. (ORC - Free Report) is a well-known finance company that allocates fund in residential mortgage-backed securities, mainly in the U.S. This company from the Finance sector has a Zacks Rank #2 and a dividend yield of 16.11%.
Mobile TeleSystems PJSC offers specialized telecommunication services in the Commonwealth of Independent States and Russia. The company sports a Zacks Rank #1, has a dividend yield of 7.09% and belongs to the Computer and Technology sector.
Given that interest rates are not likely to increase any time soon, we expect investors to gain from high yield stocks, like the ones recommended above.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
5 High Yield Stocks to Buy as Rate Hike Expectations Collapse
Federal Reserve has become conservative about increasing interest rates as the targeted inflation rate is yet far from achievable. The U.S. monetary policy is likely to be more accommodating owing to headwinds like economic slowdown in China, poor U.S. labor market conditions since the release of disappointing job report in May and weak energy prices.
CME Group's FedWatch Tool predicts that probability of the Fed rate hike is only 4% for Jun 15, 2016. Until Dec 14, 2016, the rate hike expectations are below 50%.
Stocks Worth Investing In
We believe that real estate investment trust (REIT) companies or stocks from the utilities or telecom sector make good investment options. These companies have heavy debt load but capable of offering highest dividend yields in the market, supported by their colossal size.
Thus these companies are the best bets amid low interest rates, which are not likely to increase in the near term. Given that the interest payments for loans borrowed to run large scale corporate operations would be lower, investment in these stocks will undoubtedly be a prudent choice.
Zacks to the Rescue
With the help of the Zacks Stock Screener, we have zeroed in on five stocks that carry a Zacks Rank #1 (Strong Buy) or #2 (Buy), and also have a dividend yield of over 4.5%.
Our Picks
Vivendi SA (VIVHY - Free Report) conducts services within media and content businesses primarily in France and the rest of Europe. The company also extends its services in the U.S. and globally. This Zacks Rank #2 stock from the Utilities sector has a dividend yield of 13.31%.
Cherry Hill Mortgage Investment Corp. (CHMI - Free Report) is a renowned residential real estate finance company. The organization invests in, finances and conducts residential mortgage assets in the U.S. The company holds a Zacks Rank #2 and has a dividend yield of 12.4%.
Eagle Point Credit Company Inc. (ECC - Free Report) is a type of closed ended fund that is managed and launched by Eagle Point Credit Management LLC. The company invests in fixed income markets of the U.S. The Zacks Rank #2 stock from the Finance sector has a dividend yield of 14.1%.
Orchid Island Capital, Inc. (ORC - Free Report) is a well-known finance company that allocates fund in residential mortgage-backed securities, mainly in the U.S. This company from the Finance sector has a Zacks Rank #2 and a dividend yield of 16.11%.
Mobile TeleSystems PJSC offers specialized telecommunication services in the Commonwealth of Independent States and Russia. The company sports a Zacks Rank #1, has a dividend yield of 7.09% and belongs to the Computer and Technology sector.
Given that interest rates are not likely to increase any time soon, we expect investors to gain from high yield stocks, like the ones recommended above.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>