Stock Market Correction: 2 High-Yield Dividend Stocks to Buy Now

Market Overview - The stock market has recently experienced a pullback due to increased fears of a potential recession, creating opportunities for long-term investors as broad sell-offs can lower the prices of strong businesses [1] Investment Opportunities - Dividend stocks are particularly attractive during market downturns as their yields increase when prices fall, provided that the companies maintain their payouts [2] - Two high-yield stocks are highlighted for consideration: Energy Transfer and Realty Income [2] Energy Transfer - Energy Transfer is positioned to benefit from rising energy demand, particularly driven by the AI boom, which requires substantial electricity for data centers [3] - The company operates over 130,000 miles of pipelines for natural gas and crude oil, making it a crucial component of the U.S. power grid [4] - The rollback of environmental regulations is expected to benefit oil and natural gas providers, facilitating the extraction and transportation of fossil fuels [5] - As a master limited partnership, Energy Transfer offers a current yield of 7% and anticipates a cash payout growth of up to 5% annually [6] Realty Income - Realty Income provides a passive income stream through its diversified portfolio of over 15,000 commercial properties, with a focus on sectors resilient during economic downturns [7][8] - The REIT maintains high occupancy rates, achieving 98.7% in 2024, and has a history of consistent cash returns, with 657 consecutive monthly dividends paid since 1969 [9] - Realty Income must distribute at least 90% of its profits as dividends, resulting in a forward yield of 5.8% at the current share price [10] - Lower yields on U.S. Treasuries could enhance the real estate sector, allowing Realty Income to secure cheaper debt financing and potentially increase dividends for shareholders [11]