These high-dividend-yielding stocks could see a rebound as rates decline, BMO says

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These dividend stocks are poised to move higher after the Federal Reserve starts cutting rates, says BMO.

Now could be a good time to start buying stocks with high dividend yields, according to BMO Capital Markets. The highest-paying S & P 500 stocks have significantly underperformed the index over the last year and a half, even with the rebound they've enjoyed in recent months, said chief investment strategist Brian Belski. Higher-for-longer interest rates have weighed on the group since investors have found attractive yields in the bond market.

In July, the company said it saw "encouraging" data in an early-stage study and plans to conduct more early-stage trials in the second half of the year. Meanwhile, shares of AbbVie have a 3.34% dividend yield and are up nearly 20% year to date. With its Humira drug now fighting generic competition, AbbVie has been looking to expand its pipeline. Last week, it closed on its $8.

 

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