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Sat, January 11, 2025
Fri, January 10, 2025

Smart Investor: Undervalued Stocks That Raised Dividends, Fed Rate Cuts on Hold and Investing Ideas for 2025


Published on 2025-01-11 10:21:03 - Morningstar
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  • This year has certainly gotten off to an unexpectedly bumpy start for stock and bond markets, much more so in bonds than in stocks. The yield on the US Treasury note has jumped to its highest level since October 2023, more than wiping out any gains posted as the Federal Reserve began to cut interest rates last year.

The article from Morningstar discusses strategies for investors looking at undervalued stocks that have raised their dividends, especially in light of potential Federal Reserve rate cuts in 2025. It highlights that despite economic uncertainties, certain sectors like utilities, consumer staples, and healthcare are seen as safe havens due to their consistent dividend growth. The piece suggests that with the possibility of lower interest rates, these stocks could become more attractive as they might offer higher yields compared to fixed-income investments. It also mentions specific companies like Procter & Gamble, Johnson & Johnson, and Duke Energy, which have a history of increasing dividends, making them potentially good picks for investors seeking income stability. The article advises investors to consider these stocks for long-term holding, emphasizing the importance of dividend growth as a sign of a company's health and future performance, particularly in an environment where economic recovery might be supported by monetary policy easing.

Read the Full Morningstar Article at:
[ https://www.morningstar.com/markets/smart-investor-undervalued-stocks-that-raised-dividends-fed-rate-cuts-hold-investing-ideas-2025 ]
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