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Dividend Stocks, Hot This Year, May Get Even Hotter Thanks To The Federal Reserve

FYI: Dividend stocks, which have performed well this year, may get another boost if the Federal Reserve cuts interest rates.

With lower rates, income-seeking investors could use dividend stocks more than ever, and growth investors may also be interested because declining low interest rates prop up prices of higher-yielding stocks.
Regards,
Ted
https://www.marketwatch.com/story/dividend-stocks-hot-this-year-may-get-even-hotter-thanks-to-the-federal-reserve-2019-06-19/print

Comments

  • Cintas (CTAS, $191.55) is perhaps best-known for providing corporate uniforms, but the company also offers maintenance supplies, tile, and carpet cleaning services and even compliance training. As such, it’s seen by some investors as a bet on jobs growth.
    There may be something to that. Shares have more than tripled over the past five years vs. a gain of just 51% for the S&P 500. In January, the economy notched its 100th consecutive month of employment gains. Meanwhile, weekly jobless claims stand at levels last seen in 1969.
    Regardless of how the labor market is doing, Cintas is a stalwart as a dividend payer. The company has raised its payout every year since going public in 1983. Most recently, in October, Cintas raised its annual dividend by 26.5% to $2.05 a share.
  • I believe it's safe to say that few are or would be buying Cintas for the yield.
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