3 Dividend Stocks Analysts Think Will Jump 25% or more

© Reuters. 3 Dividend Stocks Analysts Think Will Jump 25% or more

Dividend stocks are gaining traction in response to the Fed’s dovish monetary policy, rising inflation and declining Treasury yields. Because many investors are now looking to hedge a proportion of their portfolios against rising inflation by AiVIF in high-dividend-yielding stocks, analysts expect China Life Insurance (LFC), Triton International (NYSE:TRTN), and DRDGOLD (DRD) to rally in the near term. Let’s discuss.The Federal Reserve has been holding benchmark interest rates near zero since the onset of the COVID-19 pandemic to help the U.S. economy recover. Though the economy has experienced a significant recovery so far this year, economists expect the Fed’s easy monetary policy to continue in the near term, with the first rate hike projected to occur in 2023.

Given the low interest rate environment, fixed-income investors are looking to bet on stocks that have steady dividend paying histories and offer attractive yields. This trend is likely to continue because the Fed’s dovish stance is not expected to change anytime soon. While the rise in Treasury yields caused some investors to shift to government-backed securities earlier this year, the recent boom in equity markets has caused Treasury yields to decline lately, making dividend stocks the best alternative for those investors. Also, given rising inflation, investors are rapidly shifting toward high-yield dividend stocks to hedge against rising price levels.

With increasing investor focus on dividend stocks, analysts expect the share prices of China Life Insurance Company Limited (NYSE:LFC), Triton International Limited (TRTN), and DRDGOLD Limited (DRD), which offer high dividend yields, to advance in the near term.

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