Despite what some across Wall Street say, if the July consumer price index numbers come in red-hot like they did for June, you can bet on the Federal Reserve raising interest rates another 75 basis points in September. In addition, if other data points that the Fed uses to gauge inflation also move higher, there is an outside chance for the dreaded full percentage point increase to become a reality.
Despite those increases, on a historical basis, rates across the Treasury curve are still reasonably low. The 30-year benchmark Treasury bond yields a paltry 3.06%. With inflation well above that number, and factoring in any taxes, that is likely a negative return for investors.
Income investors with a degree of risk tolerance are not buying long-dated Treasury debt, but they do look for stocks of companies that pay massive dividends. Three sectors provide that opportunity: shipping, business development companies (BDCs) and mortgage real estate investment trusts (REITs). We screened our 24/7 Wall St. research database and found seven stocks that are Buy rated across Wall Street that come with 11% and higher dividends.
This post originally appeared at 24/7 Wall St.