Increased market volatility and depressed bond market returns have motivated income investors to invest in high-yield dividend stocks to secure their retirement investment return needs. We think fundamentally sound stocks BHP Group (NYSE:BHP) and Silvercrest Asset Management (SAMG), with high yields and stable payouts, could be solid additions to one’s retirement portfolio now. Let’s discuss.The Fed is expected to keep the interest rates at near-zero levels until 2023 because Fed Chairman Powell anticipates that there’s “much ground to cover” for employment to reach pre-pandemic levels. However, with the bank’s bond tapering expected to begin later this year, and with declining Treasury yields, investing in dividend stocks is ideal now for investors planning for retirement.
Given the increased demand for dividend stocks, many companies are undertaking robust payouts to attract investors. The Goldman Sachs Group , Inc. (NYSE:GS) expects aggregate dividend payouts for the S&P 500 index will grow 6% this year and in the following year. Dividend payouts increased 26% year-over-year to $471.70 billion in the second quarter ended June 30, with 84% of the companies improving or maintaining their dividends versus prior-year quarter values. Total dividends paid to investors is expected to reach $1.39 trillion in 2021.
In this scenario, we think high-yield dividend stocks BHP Group Ltd. (BHP) and Silvercrest Asset Management Group Inc. (SAMG) are expected to be ideal bets for retirement planning.