Experts: Buy These Dividend Stocks Before A Fed Rate Hike


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


  • HSBC believes that the first interest rate hike will be a non-event for high yielding dividend stocks.
  • HSBC is calling for the Fed to begin raising rates in December.
  • High-yielding dividend stocks from Hong Kong and Emerging Markets will be the biggest beneficiaries of rising rates.
  • With the Federal Reserve’s decision on interest rates just days away, traders are still trying to determine the best way to position their portfolios ahead of a possible September rate hike. In a new report, HSBC analyst Volker Borghoff explained why dividend stocks are the best way to go.

    ENTER TO WIN $500 IN STOCK OR CRYPTO

    Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

    Unique Cycle

    There is a fear in the market that rising interest rates could pose a threat to high-yielding dividend (HYD) stocks because they offer the prospect of safer fixed-income returns for investors. However, Borghoff pointed out that this particular tightening cycle might not see the same substantial move in long-end rates that past cycles have seen.

    He added that HYD stocks have underperformed the market for more than two years now. “Low growth and superior value characteristics are other positive factors in this environment,” Borghoff explained.


    FREE REPORT: How To Learn Options Trading Fast

    In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, ​a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.


    Projections

    HSBC is not expecting an interest rate hike this week. The firm is calling for the first hike to come in December of this year. Regardless of the timing, Borghoff sees the first rate hike as neutral to slightly positive for HYD stocks.

    Top Picks

    The report included a list of preferred stocks that currently demonstrate all the characteristics that HSBC likes to see when it comes to dividend plays. The firm projects that Hong Kong and Emerging Markets HYD stocks will be the biggest beneficiaries from the first hike.

    HSBC named Freeport-McMoRan Inc (NYSE: FCX), Noble Corp plc (NYSE: NE), Copa Holdings, S.A. (NYSE: CPA) and PBF Energy Inc (NYSE: PBF) as top picks.

    Disclosure: The author holds no positions in the stocks mentioned.


    Crypto Whales Are Loading Up — Are You?

    New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


    Posted In: Analyst ColorDividendsEmerging MarketsTop StoriesMarketsAnalyst RatingsTrading Ideasdividend stockshigh-yieldhigh-yield dividendHong KongHSBCVolker Borghoff