"With the Federal Reserve cutting away at rates and the broad markets soaring higher after a fairly decent earnings week, the hunt for yield may be getting a bit harder, at least for those who primarily invest in the big market indices, like the S&P 500. And though chasing dividend yields can entail putting one at greater risk of a dividend cut as well as share price depreciation (or, at"
"the very least, underperformance relative to the broad averages), I do think that those income investors who don't mind a sub-par total return for a shot at more quarterly or monthly income may wish to pursue some of the fallen dividend deals that many investors seem to be passing up right about now as they grow more excited about the AI-driven tech plays, many of which pay no dividends or dividends with yields far below the 1% mark."
Federal Reserve rate cuts and strong market gains are making yield harder to find for investors focused on major indices like the S&P 500. Chasing dividend yields increases risk of cuts and share-price declines, but income-focused investors willing to trade some total return can target fallen high-yield dividend opportunities. Small positions in near-8% yielders can modestly raise portfolio yield. Overconcentration in high-yield names risks underperforming the broader market. Covered-call and premium-income ETFs offer yield boosts with lower volatility. Individual high-yield names with sustained payouts merit selective, small-to-moderate allocations after careful risk assessment.
Read at 24/7 Wall St.
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