Because the Federal Reserve has signaled the continuation of its low-interest-rate policy until late 2023, investors seeking higher returns than fixed-income securities are offering should bet on high-yield dividend stocks. To that end, we think Ternium (TX) and Star Group (SGU) could be solid bets now because their dividend payouts yield more than 5% and they hold strong near-term capital appreciation potential. So, let’s take a closer look at these names.Given rising concerns over inflation, the Federal Reserve is expected to increase interest rates sooner than expected. However, Fed Chair Jerome Powell recently reaffirmed that the central bank would not raise interest rates too quickly solely because of inflation worries. So, we think investors looking to hedge their portfolios against the risk of inflation and while generating higher steady returns than fixed-income securities are offering should bet on high dividend yielding stocks.
Ternium S.A. (TX) and Star Group L.P. (SGU) have impressive dividend payout histories, and their current dividends yield more than 5%. Furthermore, these stocks have the necessary fundamentals to continue moving higher. Both stocks have a ‘Strong Buy’ rating in our proprietary POWR Ratings system.
Ternium S.A. (TX)