Federal Reserve ‘Jawboning’ – A Boon to High Dividend Paying Stocks

Back to the question of interest rates… of late, Federal Reserve officials have been jawboning about the likelihood of an interest rate hike during 2015. To me, it all gets back to being data dependent, and rather than repeat what I’ve been saying during the last few months, let’s instead listen to Federal Reserve Governor Lael Brainard. According to Brainard, who also happens to be a voting member of the Federal Open Market Committee, the “economic data so far do not suggest that the U.S. will see a significant second quarter rebound.”

We’ve managed to steer clear of any major pratfalls by listening to the data, and I’ll be sure to stick to that strategy as we look to navigate the summer doldrums that will soon be upon us. I suspect that as more of this lackluster data rolls in, the interest rate conversation will again turn sour, and that will be a boon to higher-dividend-paying stocks that have been hit during the last few weeks. I’m already eyeing some for my subscribers.

Source: townhall.com

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