Grab These 7% Dividend Stocks Before the Fed Rate Cuts

It is estimated that the Federal Reserve will make three interest rate cuts in 2025. Citigroup projects that these rate cuts will begin in September and rates may be slashed by 75 base points. This is good news for those with dividend-paying stocks, as these investments historically benefit from lower interest rates.

This projection certainly makes high-yield dividend stocks more enticing. Companies yielding 7% or more are suddenly attractive to investors preparing for a low-rate environment.

This slideshow spotlights four different dividend stocks yielding 7% or higher. We explore each company, including why they’re a good investment option, what analysts have to say, and how these stocks may be the best choice for 2025.

Fed Rate Cuts Expected in 2025

• Citigroup now expects the Federal Reserve to cut rates three times this year
• Total anticipated rate reduction is 75 basis points
• Cuts are now projected for September, October, and December.

Why Dividend Stocks Could Benefit

• Lower interest rates make dividend-paying stocks more attractive
• Investors may seek stable income sources as bond yields fall
• High-yield stocks could see increased demand.

Apple Hospitality REIT: Monthly Payer

• Owns 224 upscale hotels across 37 U.S. states
• Pays a monthly dividend, popular among income investors
• Brands include Marriott, Hilton, and Hyatt.

Energy Transfer: Midstream Giant

• Operates over 114,000 miles of energy pipelines
• Offers a high dividend with strong asset coverage
• Acquired Enable Partners, expanding its reach.

Healthpeak Properties: Healthcare Focus

• Specializes in healthcare real estate including labs and senior housing
• REIT structure provides tax-efficient income
• Growing demand in life sciences supports its outlook.

Telus: Diversified Telecom and Tech

• Canadian company offers telecom, health tech, and AI solutions
• High dividend yield and expanding service portfolio
• Strong digital infrastructure and innovation capabilities.

Why Investors Are Watching Closely

• Rate cuts create tailwinds for high-yield sectors
• These stocks can outperform in falling-rate environments
• Ideal for retirees or income-seeking investors.

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