Market Overview - Wall Street has experienced significant volatility in September, with the U.S. stock market bouncing back on expectations of Federal Reserve rate cuts after the largest weekly losses of the year [1] - Economic slowdown concerns continue to impact stock performance, with investors seeking high-yield dividend ETFs and stocks as defensive options [1] Rate Cuts Expectations - The Federal Reserve is anticipated to lower interest rates by 25 basis points at each of the three remaining policy meetings this year, with a current range of 5.25%-5.50% since July 2023 [3] - The CME FedWatch tool indicates a 66% chance of a 25 bps cut and a 34% chance of a 50 bps cut during the Fed's decision on September 18 [3] Economic Slowdown Indicators - The U.S. created 142,000 jobs in August, below the expected 160,000, with prior month job growth also revised lower, signaling a cooling labor market [4] - Job openings dropped to the lowest level since January 2021, and the ISM manufacturing survey showed weaker results, contributing to economic slowdown concerns [4] Volatility Factors - Continued volatility is expected due to geopolitical tensions and the upcoming November elections, with historical trends indicating September is typically a weak month for the stock market [5] ETFs in Focus - Global X SuperDividend ETF (SDIV): Annual yield of 10.8%, with 1.3 billion in assets and an average trading volume of 714,000 shares [8] - Global X SuperDividend U.S. ETF (DIV): Annual yield of 6.2%, with 1 billion, with a Zacks Rank 2 and expected earnings growth of 7.56% [10] - Delek Logistics Partners L.P. (DKL): Annual yield of 10.6%, market cap of 86.7 billion, with expected earnings growth of 0.4% [12]
ETFs & Stocks With Yield of More Than 5% to Buy