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Fed Rate Hike Looms: 3 Dividend Stocks to Fight Back
21 Jun
Summary
- Kinetik offers a 7% dividend yield, with growth from KL2 project.
- SLB positioned for long-term oilfield activity globally.
- IBM's AI focus drives demand for infrastructure and Z mainframes.
The Federal Reserve's recent meeting signaled a potential interest rate hike this year, prompting investors to seek stable income sources. Dividend-paying stocks with robust yields and growth potential are emerging as key opportunities.
Top Wall Street analysts, tracked by TipRanks, have identified Kinetik, an energy midstream company, as a compelling investment. Kinetik offers a substantial 7% dividend yield, supported by expected growth from its KL2 project and a strategic advantage in handling sour gas in New Mexico. Analysts anticipate continued positive performance, with potential for capital returns through dividends and buybacks.
Oilfield services company SLB, formerly Schlumberger, is another dividend pick. With a 2.5% yield, SLB is positioned to benefit from increased global oilfield activity driven by Middle Eastern supply dynamics. Analysts foresee long-term earnings growth fueled by international market expansion and digital business diversification.
Tech giant IBM rounds out the list, offering a 2.7% dividend yield. The company's strategic focus on quantum computing and artificial intelligence is driving significant demand for its infrastructure, particularly its Z mainframes, as AI workloads expand into new areas. Analysts predict continued compounding growth for IBM's infrastructure business.
