Energy Transfer and Verizon are both reliable income plays.

When interest rates surged in 2022 and 2023, many blue chip dividend stocks slumped as income investors pivoted toward risk-free CDs and Treasuries for higher yields. However, the Federal Reserve cut rates three times in 2024, and many investors expect one or two more rate cuts this year as inflation cools.

As that happens, the 10-Year Treasury's yield, which currently sits at 4.3%, should decline further and drive more income investors back toward higher-yield dividend stocks . These two stocks should benefit from that rotation: Energy Transfer ( ET 0.20% ) and Verizon ( VZ 0.16% ) . They both pay high yields, trade at low valuations, and are built to generate stable returns through bull and bear markets.

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