As you know, the Federal Reserve ignited high-volume, panic selling last week by issuing a shocking Federal Open Market Committee (FOMC) statement. Clearly, the December FOMC statement was not dovish enough for Wall Street.
As expected, the Fed voted unanimously to raise key interest rates by 25 basis points. What was surprising was that the Fed also signaled that it would increase rates two more times in 2019. And Fed Chair Jerome Powell failed at calming down the financial markets in the aftermath.
So, in the wake of a disappointing FOMC statement, not only did the stock markets pullback sharply, but Treasury yields also slipped lower. The 10-year Treasury yield was sitting below 2.8%.
Considering that the dividend yield on the S&P 500 recently crossed over 2%, yield-hungry investors are going to be pouring back into the stock market in the New Year. Remember, most dividends are tax-advantaged and taxed at a maximum federal rate of 23.8%. So, the S&P 500 actually yields more than a 10-year Treasury bond that is taxed at a maximum federal rate of 40.8%.
To help you align your personal portfolios with the best dividend growth stocks for 2019, I’ve compiled a list of nine A-rated dividend stocks. In other words, these stocks offer the perfect blend of income and growth, since they earn top marks in Dividend Grader and earn at least an A or B-rating in Portfolio Grader.