Are you looking to boost your investment portfolio with high dividend yielding stocks? Now might be the perfect time to consider this strategy, as suggested by BMO Capital Markets. According to chief investment strategist Brian Belski, the highest-paying S&P 500 stocks have been underperforming the index, despite recent rebound. This underperformance is expected to change with the Federal Reserve likely to cut interest rates, making bond market yields less attractive.
At Extreme Investor Network, we believe in seizing opportunities when they arise. BMO’s analysis of historical trends shows that this type of underperformance often leads to an impressive recovery, indicating potential gains for investors. Additionally, the current underperformance seems to be disconnected from the fundamentals of these stocks, presenting an opportunity for savvy investors.
One of the top picks on BMO’s buy list is Pfizer, a pharmaceutical giant with a dividend yield of 5.73%. Pfizer has shown strong growth this year, with its second-quarter results surpassing expectations. Another notable pick is AbbVie, with a 3.34% dividend yield and an ambitious acquisition strategy to diversify its portfolio.
In the utilities sector, American Electric Power and Southern Company stand out with dividend yields of 3.58% and 3.33% respectively. Utilities have been performing well this year, driven by the increasing demand for electricity. On the other hand, the real estate sector has seen more modest gains, but BMO remains bullish on real estate investment trusts. Companies like Digital Realty Trust and Host Hotels & Resorts present enticing opportunities for investors looking to diversify their portfolios.
At Extreme Investor Network, we are committed to providing valuable insights and recommendations to help our readers make informed investment decisions. Stay tuned for more updates and analysis on the latest market trends and opportunities. Happy investing!