Fed Pause Hopes Put Beaten-Down Dividend-Paying Stocks Back in Play
- A US dollar gauge declines more than 8% from a September peak
- Wall Street analysts grow bullish on household-products firms
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As the Federal Reserve nears the end of its most aggressive tightening campaign in decades, a softening US dollar would bode well for one particular cohort of beaten-down stocks: consumer staples.
These so-called safety shares, known for their strong dividend yields and steady business, fell out of favor this year and are trailing well behind those of riskier technology and discretionary companies as higher borrowing costs have reduced their appeal as dividend plays.