In a logical world, one would think that, with the Federal Reserve raising interest rates all year long, the rates across the entire Treasury yield curve would be headed higher. In fact, just the opposite has been occurring. Since the middle of June, the yield on the benchmark 10-year note and 30-year bond have retreated a stunning 23%. In fact, with federal funds now at 2.25% to 2.50%, the 10-year note is less than 20 basis points higher to the top end of the range.
Why is this happening? There are numerous reasons, but the biggest one is that the bond market senses that a recession, if not here now despite the empirical data that says it is, is certainly on the way, and it could be very ugly. What are income investors to do? Look for quality stocks that can survive in a turbulent market and that pay big dividends.
We screened our 24/7 Wall St. research database for quality companies that, while perhaps off the radar in some cases, offer solid upside and dependable dividends. Plus, all are rated Buy across Wall Street.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Antero Midstream
With shares trading just under $10 apiece, this very wellun company offers a huge total return package. Antero Midstream Corp. (NYSE: AM) owns, operates and develops midstream energy infrastructure. It operates through two segments.
The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources’ wells in West Virginia and Ohio.
The Water Handling segment delivers fresh water and offers other fluid handling services, such as wastewater transportation, disposal and treatment, as well as highate transfer services.
Antero Midstream stock investors receive a 9.35% distribution. Wells Fargo recently lifted its target price to $13. The consensus target is $10.50, and shares closed on Thursday at $9.63.
AT&T
The legacy telecommunications company has been going through a long restructuring, has lowered its dividend and has sold off or merged underperforming assets. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.
The Communications segment offers wireless voice and data communications services and sells handsets, wireless data cards, wireless computing devices with carrying cases and hands-free devices through its own company-owned stores, agents and third-party retail stores.
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