The current economic landscape feels like a tightrope walk for investors. Inflation has been cooling since the 2022 peaks but is still holding around 3%, and the trade war on top is making it tough for the Federal Reserve to continue cutting. Recession fears are also making a comeback as UMich sees declining consumer sentiment and inflation ticking up much higher due to tariffs.
Investing in dividend stocks may not look like a smart move right now, especially as Treasury yields go higher and are “riskless,” but it’s still a good time to lock in some stocks trading below their intrinsic valuations. They come with yield and capital appreciation and don’t lock you into a fixed yield like Treasuries. Plus, all the stocks I’ve listed here yield higher than Treasuries. Their safety profile might not be as good, but the long-term potential is better as they eventually recover.
This post originally appeared at 24/7 Wall St.