Investing Topics: Interest Rates

The recent pullback in dividend-paying stocks means that two of our favorites at attractive valuations. Both could experience more downside in the near term because of concerns about rising interest rates, but remain solid holdings for the long haul.

Investors should focus on buying best-in-class utility stocks at reasonable valuations, instead of fretting over what the Federal Reserve may or may not do.

Now that first-quarter earnings season has wrapped up, concern about rising interest rates has taken over as the primary near-term driver for dividend-paying stocks. Here’s how you can take advantage.

Earnings, not interest rates, will drive returns for dividend-paying stocks in 2015 and beyond.

The market’s attention has turned to the Federal Reserve once again. But savvy investors will focus on industry- and company-specific drivers to identify outperformers. We explore several key trends for essential-services investors.

The Dow Jones Utilities Average has pulled back from its January 2015 high, while, at the opposite end of the teeter-totter, energy stocks have caught a bid. We explain our strategy for investing in this late-stage bull market, kick the tires on recent mergers and acquisitions and analyze the results of the Federal Communication Commission’s recent spectrum auction.

With the Dow Jones Utilities Average trading at an elevated valuation, investors shouldn't be afraid to take some profits off the table in their big winners.

Last week, the Federal Reserve ended its bond-buying program. Here's what this long-awaited policy shift means for dividend-paying stocks.

Conventional wisdom holds that October is a dangerous month for stocks, which means that investors must think unconventionally to get ahead.

An unsettled market has  rewarded patient investors who kept some powder dry with a number of buying opportunities. Opportunity No. 1: International Intrigue: A strengthening US economy and the Federal Reserve’s push to rein in six years of easy money have boosted the greenback’s value relative to foreign currencies, placing many of our favorite international stocks on the bargain counter. Snap them up now. Opportunity No. 2: Irrational Fear of Rising Interest Rates: The prospect of a stingier Fed has also raised concerns that US interest rates will head significantly higher, undermining returns posted by dividend-paying stocks. I tackle this myth head on and highlight several high-quality telecoms, water companies and electric utilities that have pulled back to favorable price points. Opportunity No. 3: Oil’s Retrenchment: Oil prices have also plummeted of late, fueled by surging US production and elevated refinery outages. This pullback has panicked weaker hands, giving savvy investors an opportunity to buy rock-steady integrated oil companies and first-rate pipeline owners. Opportunity No. 4: Politics as Usual: Uncertainty related to upcoming US elections has likewise unsettled the market and contributed to the market’s recent weakness. We’ll have a full review in the November issue.