With the latest CPI report coming in lower than expected, policymakers signaled smaller interest rate hikes ahead. However, Fed Chair Jerome Powell cautioned that the monetary policy would…
continue to stay restrictive until some real signs of progress in inflation are seen and indicated that the final level of interest rates would be higher than previously expected.
Moreover, according to the data released by the Labor Department last week, the jobs report came in hotter than expected, with nonfarm payrolls increasing by 263,000 in November, against Dow’s estimates of 200,000. This might prompt the Fed to raise benchmark rates further.
“The labor market is hot, hot, hot, heaping pressure on the Fed to continue raising policy rates,” said Seema Shah, the chief global strategist at Principal Asset Management.
Since the economy is widely expected to tip into a recession next year, it could be best for investors to own quality and resilient stocks, Walmart Inc. (WMT) and Waste Management, Inc. (WM).
Walmart Inc. (WMT)
WMT operates retail, wholesale, and other units worldwide and offers an assortment of merchandise and services at everyday low prices (EDLP). The company operates through three segments Walmart U.S., Walmart International, and Sam’s Club.
Over the last three years, WMT’s dividend payouts have grown at a 2.4% CAGR. Its four-year average dividend yield is 1.71%, and its annual dividend of $2.24 translates to a 1.50% yield.
On October 31, WMT and Popable, a pop-up shop marketplace platform, announced…
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