The Next Big Move In Interest Rates: How I’m Buying The Dividend Sell-Off

Live updates

1. 52m ago

   Rising Treasury Yields Pressure Dividend Stocks

   Dividend stocks are facing significant downward pressure as Treasury yields climb above 5%. Market analysts are divided on the risk level, with some viewing the sell-off as a buying opportunity while others warn that previously safe dividend assets have become dangerous. The trend is visible in specific equities such as Fortis, Telus, and TC Energy, which are being negatively impacted by the rising bond yields. Despite the decline, some market observers maintain that dividend stocks remain a viable investment option.

   Why it matters

   Investors typically shift from dividend stocks to government bonds when bond yields rise because bonds offer a safer return. This rotation can trigger a broad sell-off in high-yield equities. The current environment tests whether dividend growth can outpace rising interest rates.

   What is confirmed

   • Treasury yields have risen over 5%.
   • Dividend stocks are under pressure due to rising bond yields.

   Still unconfirmed

   • Dividend stocks are not a lost cause despite rising yields.

   What to watch next

   • Further movement in Treasury yields above the 5% threshold
   • Quarterly earnings reports from major dividend-paying companies
   • Official interest rate decisions from central banks
   Sources used for this update (6)

   1. Seeking Alpha — The Next Big Move In Interest Rates: How I’m Buying The Dividend Sell-Off
   2. Barron's — Dividend Stocks Come Under Pressure. How to Fight Back.
   3. Barchart.com — Dividend Stocks Are Not a Lost Cause Even as Treasury Yields Rise Over 5%
   4. Yahoo Finance — Your Safest Dividend Stocks Just Became the Most Dangerous, Cramer Warns
   5. The Globe and Mail — Dividend stocks are getting dinged by rising bond yields. Just look at Fortis. And Telus. And TC Energy ...
   6. note.com — The Four-Way Roundtable at the Start of the Week
   confidence 80%