2 Big Dividend Stocks Yielding at Least 7%; Jefferies Says ‘Buy’

2 Big Dividend Stocks Yielding at Least 7%; Jefferies Says ‘Buy’

After a full year of market gains, markets are getting a bit nervous. Inflation is up, US job openings are exceeding the number of unemployed by record amount, and the pile-up of container ships on the West Coast is a continuing reminder that supply chains have not yet recovered from the pandemic disruptions.

Taking the measure of current conditions, Jefferies’ global equity strategist Sean Darby lays out the worst case scenario: “…if breakeven inflation expectations were to fall, narrowing real interest rates at a time when US treasury bonds were selling off. Such a scenario would be quite difficult for the S&P 500 given the current valuations. Secondly, we would expect US equities to be similarly challenged if US economic data were to subside, earnings momentum started to stall and treasury yields were to rise. The ‘buying on dips’ psychology would certainly be tested under both scenarios.”