Sept. 16 Will Provide a Clearer Path for Interest Rates -- These 3 High-Yield Dividend Stocks Win Either Way
These companies built their portfolios to win whether rates rise or fall.
Overview
The Federal Reserve is meeting later this week. It will announce its interest rate decision on Sept. 16. With the latest inflation data showing a bigger-than-expected increase in August, the market now sees an 80% chance of a quarter-point hike this week. While a hike isn't a forgone conclusion, it seems likely.
Higher interest rates are typically bad news for high-yielding dividend stocks. However, some can win either way. Ares Capital (NASDAQ:ARCC), Starwood Property Trust (NYSE:STWD), and Ladder Capital (NYSE:LADR) are among the winners because they primarily invest in floating-rate assets. As a result, their income would rise with rates, while they'd benefit from falling rates on the liabilities side of their balance sheets.
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Originally published at www.fool.com.