One Fed Governor Sees Half-Point Cut in December: Our Top 7% and 8% Dividend Stock Picks

2 hours ago 1

Lee Jackson

Mon, November 17, 2025 astatine 8:15 AM CST 8 min read

Just arsenic we grew accustomed to the likelihood of a 3rd national complaint chopped successful December, immoderate ostentation information and a big of different factors led immoderate connected Wall Street to telephone for the Federal Reserve to clasp disconnected successful December and possibly hold until the archetypal gathering successful 2026. However, past week, we witnessed the astir alarming portion of information we had seen successful immoderate time: a staggering 153,074 occupation cuts, the highest successful implicit 2 decades, driven by the adoption of artificial quality (AI) and cost-cutting measures. Major tech and retail giants, including Amazon (NASDAQ: AMZN), UPS (NYSE: UPS), Intel (NASDAQ: INTC), and Target (NYSE: TGT), person announced important layoffs. This successful crook sparked Federal Reserve Governor Steven Miran to marque a forceful lawsuit for a half-percentage-point involvement complaint simplification astatine the Federal Open Market Committee's December meeting, arguing that caller economical indicators warrant much assertive monetary easing.

With the dreadful layoff numbers from past month, the tables look to person turned for a 50-basis-point complaint chopped successful December.
While astir proceed to foretell a 25-basis-point cut, if any, much antagonistic economical information betwixt present and the extremity of the period could tilt the scales.
Either way, continued complaint cuts of immoderate size could beryllium to beryllium a coagulated tailwind for dividend stocks, particularly those with higher yields, specified arsenic the 7% variety.
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Governor Miran went connected to adhd that halfway PCE ostentation has declined substantially toward the Fed's 2% people portion unemployment has ticked upward successful caller months. He emphasized that the cardinal slope should determination preemptively to enactment economical momentum alternatively than hazard waiting excessively agelong and allowing conditions to deteriorate further, portion acknowledging that immoderate of his colleagues connected the committee similar a much cautious quarter-point approach. He besides said this: "A 50 ground constituent simplification would inactive permission america successful restrictive territory, but it would show our committedness to achieving some sides of our dual mandate."

One thing is sure: if the Fed were to instrumentality a 50-basis-point increase, it would apt travel arsenic a daze to the marketplace and could ignite an end-of-year Santa Claus rally. Now is the cleanable clip to bargain our 4 favourite 7% dividend stocks, each of which are Buy-rated astatine apical Wall Street firms we follow.

Since 1926, dividends person contributed astir 32% of the full instrumentality for the S&P 500, portion superior appreciation has contributed 68%. Therefore, sustainable dividend income and superior appreciation imaginable are indispensable for full instrumentality expectations. A survey by Hartford Funds, successful collaboration with Ned Davis Research, recovered that dividend stocks person delivered an annualized instrumentality of 9.18% implicit the past 50 years (1973-2023). Over the aforesaid timeline, this was much than treble the annualized instrumentality for non-payers (3.95%).