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Value stocks are making a comeback in 2024 as the Fed struggles to curb inflation and cut rates. Investors prefer value stocks with high inflation because they are less affected by high interest rates than growth stocks, which suffer from the high credit costs required for expansion. This makes the current profits of value stocks more preferable to the future profits that growth stocks promise.
With the Fed hinting that it will keep rates high until inflation is lowered to 2%, value stocks are becoming the best stocks to invest in today. Below are the highest dividend-paying stocks you can buy in May 2024, offering yields above 7%.
Altria Group, Inc. (NYSE:MO), the world’s second-largest tobacco company, is our top pick for value stocks with high yields and a good dividend history. The stock is performing exceptionally well in May 2024 on fears of an impending recession as it is considered a safe haven in market downturns due to its recession-proof products. Altria Group offers an impressive annual dividend yield of 8.46% and has been paying high-yield dividends for the past 52 years, regularly ranking among the highest dividend stocks in the S&P 500.
Ares Capital Corporation (NASDAQ:ARCC) is another high-yield stock worth considering and one of Warren Buffet’s top picks. Buffet is considered the most successful value investor today. Ares Capital offers a mouth-watering annual dividend yield of 8.95% and has been paying increasingly higher dividends over the past 13 years. As a company that provides financing solutions to mid-market companies, Ares Capital tends to perform better in a high interest rate environment.
Diversify with these high-yield alternatives
While these value stocks offer attractive returns, investors should also consider alternative investments that can deliver high returns and diversification. Two such options are EquityMultiple’s Arrivald Private Credit Fund and Basecamp Alpine Notes.
The Arrived private credit fund simplifies investing in short-term financing for real estate projects, guaranteeing attractive returns through quality residential real estate. With targeted annualized dividends of 7-9%, quarterly liquidity and a diversified pool of real estate-backed loans, this fund is an excellent addition to equity investments.
Click here for more information about the Arrivald Private Credit Fund.
Basecamp Alpine Notes from EquityMultiple offers another powerful short-term cash management tool, with a target APY of 9.00% over 3 months and a minimum investment of just $1,000. These notes offer high liquidity and attractive compound interest rates, making them an ideal choice for investors looking to build their income-generating portfolio. As a special offer, Basecamp Alpine Notes are exclusive to new investors on the EquityMultiple platform, giving new investors a unique opportunity to take advantage of these favorable terms.
Click here for more information about Basecamp Alpine Notes.
In conclusion, while value stocks like Altria Group and Ares Capital Corporation offer sustainable returns above 7%, investors should also consider alternative high-yield investments like EquityMultiple’s Arrivald Private Credit Fund and Basecamp Alpine Notes. By diversifying your portfolio with a mix of value stocks and alternative investments, you can create a more resilient and balanced approach to generating income in all market conditions.
This article These Value Stocks Have Sustainable Yields Above 7% originally appeared on Benzinga.com
