The Chicago Board Options Exchange’s Volatility Index (VIX), the market’s favorite measure of volatility, is trending higher ahead of Election Day. So if you’re looking for a rewarding but relatively safe haven for your money amid pre-election stock market volatility, dividend stocks may be the answer. Yes, you can invest in low-risk CDs, but we worked with industry experts to identify a list of stocks with dividends greater than 5.50% annual percentage yield (APY) that the highest CD rates are currently paying. did. And the good news is, you can identify these investment opportunities yourself whenever you want using the best stock screening tools and online brokerage platforms.
The stock market remains unstable in the lead-up to the 2024 presidential election. Currently, the best CDs pay high interest rates of 5.00% or more, but investing in stocks may give you a higher return. If you want to invest in low-risk, high-dividend CDs and earn more than that, use our stock screener to find stocks like Energy Transfer LP, Enterprise Products Partners LP, Verizon Communications Inc., and Pfizer Inc. Identify high dividend stocks such as .
Dividend stocks that are attracting attention now
Stock screeners, found on standalone platforms as well as online brokers and trading platforms, are great tools for finding investment opportunities of all kinds. Financial advisors are also a source of ideas. Higher yield opportunities exist in the pharmaceutical, energy, consumer staples, utilities, banking and telecommunications industries, said Paul Schatz, president of Heritage Capital and treasurer of the National Association of Active Investment Managers (NAAIM). It is said that there is.
If you focus on a few specific companies, stocks, and funds, you can earn dividends that are worth more than the current highest 5.50% CD. According to Morningstar Direct, the following four stocks all have dividends exceeding 5.00% as of October 28th.
Energy Transfer LP (ET) (natural gas pipeline and storage facility operator, natural gas distribution company): 7.71% yield Enterprise Products Partners LP (EPD) (natural gas, oil pipeline company): 7.05% yield Verizon Communications Inc. ( VZ) (telco) ): yield 6.42%Pfizer (PFE) (pharmaceutical and biotechnology multinational): yield 5.79%
Find dividend stocks
When using popular screening tools like Zacks or Finviz, one way to focus your search is to focus on sectors likely to benefit from the presidential election. Sectors likely to benefit from a Trump victory include financials, energy, industrials and defense, said Jose Torres, senior economist at Interactive Brokers. Harris’ victory should help technology, electric vehicles, renewable energy and home builders.
The Fidelity Investments Stock Screener (account required) examines 550 stocks in the energy sector with yields between 6.00% and 10.00% and positive earnings per share (EPS) growth this year compared to last year.10 You can narrow down your search by brand. Institutional ownership has increased by over 1.00% in recent quarters. The latter two characteristics can help identify stocks with the potential for short-term total returns.
Stocks that could be seen as a result of this strategy include MPLX LP (MPLX), Hess Mainstream LP (HESM), Sunoco LP (SUN), and Noble Corporation PLC (NE).
The stock screening feature also allows you to include mutual funds and exchange-traded funds (ETFs) in your search, or limit your search to such pooled assets. That could potentially include other stocks Schatz recommends on the shortlist. For example, the Alerian MLP ETF (AMLP), an ETF that tracks the Energy Infrastructure Master Limited Partnership, had a dividend yield of 7.73% as of October 28th.
Note
You may need an account to use the stock screener or the broker platform screener.
There is no risk-free inventory.
Keep in mind that this approach is not a panacea. No stock is completely risk-free.
“[That’s]a dangerous word,” said Rick Edelman, a financial advisor and host of the podcast “The Truth About Your Future with Rick Edelman.” “In short, the higher the yield, the higher the risk. Those chasing higher yields (investors) find themselves earning more interest but losing their principal and are dissatisfied. I often hold it.”
But historically, dividend-paying stocks have been less susceptible to market volatility than non-dividend-paying stocks.
Typically, listed companies start paying regular dividends once they have grown to a stable level. The more stable the dividend, the more shareholders reward the company for maintaining that income stream.
Why are high-yielding stocks often risky? A high dividend yield can indicate that a company is in trouble. Therefore, it’s important to weigh many factors when looking for dividend opportunities. When screening ideas, a good place to start is by considering total returns over long periods of time, such as the past 10 years, and comparing stocks to the broader market in the form of the S&P 500 index.
Another approach to income investing involves targeting stocks that continue to increase their dividends every year. Such stocks usually try hard to avoid losing that distinction. S&P 500 companies that have increased their dividends for at least 25 consecutive years are “dividend aristocrats.”
Of course, CDs should also be part of your financial and investment plan. With their fixed interest rates and generally stable underlying assets, CDs can be a shock absorber against market declines, even when placed on so-called ladders with staggered maturities. And no matter who wins next week’s election, securing the best CD rate today could guarantee returns well into 2025, 2026, and beyond.
