The stock market is a rollercoaster right now. Volatility is spiking… the Nasdaq just had its worst week in almost two years… and anxieties about a looming recession are spreading like wildfire.
Adding fuel to the flames is the Fed. After months of holding interest rates steady, they’re signaling that rate cuts are imminent.
Some investors are running for the hills. But this fear-driven selloff is creating a rare opportunity – the chance to buy high-quality dividend stocks at a steep discount.
You see… lower rates mean lower borrowing costs, which can boost corporate profits and fuel stock prices higher. That’s why the smart money – like my colleagues Chris Johnson and Shah Gilani – are already positioning for this rally, locking in solid dividend yields while they wait. And today, you have the opportunity to join them.
Here’s our list of 5 dividend stocks that will thrive as interest rates fall (and potentially boom as the economy normalizes):
1. Clorox (CLX)
Dividend Yield: 3.22%
Thesis: Essential consumer goods like Clorox bleach, Pine-Sol cleaner, and Glad trash bags are always in demand, regardless of what happens in the economy. That steady revenue stream provides a cushion for the stock price (and dividend) that most companies don’t have.
Analysis: Chris Johnson of Money Morning sees Clorox as an “Income Stock of the Week” that is benefiting from investors looking for dividend-yielding growth stocks as fears of an economic slowdown proliferate. He notes that “Shares are trading in a bullish trend according to the rising 50-day moving average.” As he puts it, “[W]atch for momentum to drive the stock to a target price of $200 as investors continue to look for dividend yielding growth stocks in 2025.”
2. Medtronic (MDT)
Dividend Yield: 3.29%
Thesis: Medtronic is another “recession-proof” stock, as people will always need medical devices like pacemakers, insulin pumps, and surgical tools, regardless of the state of the economy. This stability, combined with its solid dividend yield, makes it an attractive and potentially lucrative investment to own as the economy softens and into a recovery.
Analysis: Chris Johnson also highlighted Medtronic as an “Income Stock of the Week”, noting that the healthcare industry is likely to stay strong during an economic downturn. He sees the stock’s recent momentum breakout above $85 as a sign that shares could soon be heading for $100… and then $125!
3. Teleflex (TFX)
Dividend Yield: 1.02%
Thesis: Teleflex, a medical supplier, is similar to Medtronic in that its business is relatively insulated from economic downturns. It specializes in critical care products, essential surgical instruments, and vascular access products. People will always need these tools regardless of what happens in the broader economy.
Analysis: Chris Johnson also likes Teleflex… particularly its recent Golden Cross pattern in the charts. He expects this to drive shares to $250, and then possibly to $275 within the next year.
4. Ford (F)
Dividend Yield: 5.46%
Thesis: Ford’s 5.46% dividend yield is the highest on our list today. Of course, this enticing payout is not without risks, as Ford is a legacy automaker navigating a challenging economic environment and a massive transition to electronic vehicles. Shah Gilani of Total Wealth Research recommends “buying the dip” in Ford as its recent pullback has created an outsized opportunity for investors looking to collect dividends and potentially profit from a recovery in its share price.
Analysis: Ford may not be as exciting as Tesla, but it does pay a dividend. As Shah Gilani puts it, “If General Motors rallies, where’s it going to go? If Ford rallies to get back to its recent highs, you’re going to have a nice 40% gain. You got 30%, 40% gain potential in Ford.”
5. Entravision Communications (EVC)
Dividend Yield: 10.00%
Thesis: Entravision is the highest-yielding dividend stock on this list… by far. But that doesn’t mean it’s the safest. Its massive 10% payout is potentially a red flag, and Marc Lichtenfeld of Wealthy Retirement believes that the company may be forced to cut the dividend if its free cash flow continues to decline. However, as a contrarian play, this stock could outperform in a big way if the economy stabilizes. If management can stop the bleeding and show that the business is turning around, its 10% yield may be too enticing for Wall Street to ignore.
Analysis: Marc Lichtenfeld explains that Entravision’s recent track record is not ideal for dividend investors, as the company previously cut the dividend in half in 2020. While it has raised the dividend since then, he believes that its declining cash flow puts the current payout at risk.
Don’t Miss Out: Download this free report today to discover more on why these 5 dividend stocks can thrive as interest rates fall. I’ll explain the key factors smart investors are watching now – and how to profit as the economy recovers!
P.S. I’ll be back tomorrow to reveal a new group of AI stocks poised to explode as OpenAI prepares to unleash its revolutionary new AI model, “Strawberry.”
