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Spencer Platt | Getty Images News | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Meanwhile, the 10-year Treasury yield fell around 10 basis points to 4.569% and the 2-year yield slipped 3 basis points to 4.915%. As Treasury yields serve as the benchmark for interest rates on loans and cash investments, sinking yields generally benefit rate-sensitive companies more. Both the economy and markets have truly acted in strange, unprecedented ways ever since the pandemic.
Persons: Spencer Platt, they're, WTI's, that's, Alastair Pinder, Austan Goolsbee, Organizations: New York Stock Exchange, Getty, CNBC, West Texas Intermediate, Brent, Treasury, Big Tech, Amazon, Nasdaq, Dow Jones, Dow, U.S . Federal, HSBC, Chicago Federal Locations: New York City, That's, Israel
David Paul Morris | Bloomberg | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. What you need to know todayThe bottom lineLast month's sudden surge in Treasury yields and oil prices — both of which tend to suppress investors' appetite for stocks — looks to be ending. As Treasury yields serve as the benchmark for interest rates on loans and cash investments, sinking yields generally benefit rate-sensitive companies more. Chicago Federal Reserve President Austan Goolsbee told CNBC, "Because of some of the strangeness of this moment, there is the possibility of the golden path ... that we got inflation down without a recession."
Persons: Goolsbee, David Paul Morris, they're, WTI's, that's, Alastair Pinder, Austan Goolsbee, Organizations: Federal Reserve Bank of Chicago, Bloomberg, Getty, CNBC, West Texas Intermediate, Brent, Treasury, Big Tech, Amazon, Nasdaq, Dow Jones, Dow, U.S . Federal, HSBC, Chicago Federal Locations: Moran , Wyoming, That's, Israel
Analysts point to receding recession concerns and the prospect of a less aggressive policy stance from the U.S. Federal Reserve as factors fuelling hopes for a broader market rally. The second quarter earnings season has started positively for cyclical sectors, with over a quarter of the global companies announcing their results so far, Refinitiv Eikon data showed. "The upcoming earnings season has the potential to broaden the rally for sure. However, there are plenty of laggards especially in cyclical sectors such as financials and consumer discretionary, which are available at attractive valuations, analysts say. Over the past month, the communication services, mining and financial sectors have all posted about 5% gains, outpacing the tech sector's modest 2% rise.
Persons: Puneet Singh, Singh, Alastair Pinder, Derek Izuel, Patturaja Murugaboopathy, Noel Randewich, Vidya Ranganathan, Alison Williams Organizations: U.S . Federal Reserve, Reuters, Societe Generale, Carnival Corp, Equity, Nasdaq, Intelligence, Royce, Reuters Graphics Reuters, HSBC Research, Shelton Capital Management, Thomson Locations: U.S, Singapore, Asia, Europe, California
But UBS is still calling for a recession, which should cause more defensive quality dividend stocks to outperform. UBSLastly, UBS expects dividend growth to exceed earnings growth in 2023. Dividend growth (in gold) has historically been much less volatile than earnings growth (in blue). UBS40 high-quality dividend stocks to buyIn this environment, investors would be wise to pursue quality within dividend stocks. Below are the 40 high-quality dividend stocks to buy along with the ticker, market capitalization, sector, and expected 2023 dividend yield for each, according to UBS.
UBS screened the S & P 1,500 for stocks that have a forward dividend of more than 2% and strong relative dividend growth expectations over the next six months. Here are eight stocks that made UBS' list. Discover Financial made the list, with a forward dividend of 2.2%. The name with the highest forward dividend yield on the list is billboard operator Lamar Advertising at 4.67%. Other names that made UBS' list include PepsiCo , Qualcomm , Broadcom , Ralph Lauren and ConocoPhillips .
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