Over the past two years, high-yield dividend stocks struggled as interest rates rose, causing them to lose their appeal compared to risk-free options like CDs and Treasury bills. However, with the recent rate cuts by the U.S. Federal Reserve and expectations of more cuts to come, investors are advised to consider high-yield dividend stocks and ETFs again. Two covered-call ETFs, JPMorgan Equity Premium Income ETF and JPMorgan Nasdaq Equity Premium Income ETF, along with two municipal-bond ETFs, VanEck High Yield Muni ETF and BlackRock High Yield Muni Income Active ETF, are recommended for generating passive income in the current market environment.
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What’s the Better Stock for Dividend Investors?
Tobacco giant Altria offers a high dividend yield of 7% but faces business struggles and modest dividend increases, while pharma company Eli Lilly has a lower yield but impressive dividend growth. Altria has a longer streak of raising dividends, but Eli Lilly has seen higher increases in the past five years. Despite Altria's historical performance, Eli Lilly may be the better long-term dividend stock due to its growth opportunities and potential for future yield increases....
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