Don't Overcomplicate It, 3 High Yield ETFS To Buy And Never Sell

"The Federal Reserve cut rates again on Dec. 10, but signaled it may be slowing down on further cuts. Three board members voted against the cut, reflecting an unusual split on where the Fed sees the economy going. In announcing the new rates, Chairman Jerome Powell said that tariffs are keeping inflation higher than economists would like to see. That sentiment is making the Fed cautious, though President Trump is pushing for even lower rates."

"2. State Street SPDR S&P Dividend ETF (SDY) This fund seeks to provide results that correspond generally to the S&P High Yield Dividend Aristocrats Index, which screens for companies that have consistently increased their dividend for at least 20 consecutive years. Top holdings include Verizon Communications ( VZ), Realty Income Corp. ( O), Target Corp. ( TGT), and Chevron Corp. ( CVX)."

On Dec. 10 the Federal Reserve cut rates again but signaled it may slow further cuts, with three board members voting against the move. Chairman Jerome Powell said tariffs are keeping inflation higher than economists would like, and President Trump is pushing for even lower rates. The most likely path projects one more cut in 2026 and another in 2027. Anticipation of a prolonged low-rate era is driving investor interest in income investments, including dividend-growing stocks and low-cost, diversified high-yield ETFs such as SCHD, SDY, and PIMCO HYS.

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