Investors may consider high-yield dividend stocks like Kraft Heinz and AT&T post-Fed rate cut.

From Nasdaq: 2024-10-15 10:15:00

Following the Federal Reserve’s 50-basis-point rate cut, markets have hit new all-time highs. Investors may want to rebalance portfolios, reducing exposure to growth and tech stocks. In a lower-rate environment, high-yield dividend stocks like Kraft Heinz and AT&T become appealing options for income-seeking investors.

Kraft Heinz, with a 4.52% dividend yield, has iconic brands and a forward P/E ratio of 11.19. Analysts give it a Hold rating, with 6 of 11 analysts rating it a Buy. Earnings, due on October 30, could impact the stock’s trajectory. Berkshire Hathaway holds a 26.9% stake in the company.

AT&T, with a 5.22% dividend yield, has climbed nearly 27% YTD. Analysts forecast nearly 7% upside, with a Moderate Buy rating. The company’s upcoming earnings report on October 23 will be closely watched. With a P/E ratio of 12.21 and favorable valuation, AT&T is positioned as a defensive play with growth potential.



Read more at Nasdaq:: Seize the Opportunity: 2 High-Yield Stocks for Your Portfolio