Bank of America Sees Three Fed Rate Hikes in 2025, Recommends Four Dividend Giants

Macro Impact 4
โดย 24/7 Wall St.·Read original
Summary · why it matters

Bank of America now expects three 25-basis-point Federal Reserve rate hikes this year, in September, October, and December, which would take the policy rate to 4.25-4.5%. The firm had been skeptical of the need for cuts in 2025 and now believes the Fed will reverse those cuts quickly, citing sticky inflation that could push Core PCE to 3.5% in May. Against this backdrop, Bank of America screened for quality dividend payers across four sectors that tend to benefit from rising rates, highlighting Wells Fargo in financials, Chevron in energy, Merck in healthcare, and Altria in consumer staples. Altria's annual dividend of $4.24 per share currently yields 6.1%, while Chevron pays a substantial 3.84% dividend, which was raised by 5% earlier this year. All four stocks are rated Buy by top Wall Street firms.

Impact on stocks 8

Consumer Staples▲ · 2 stocks
Altria Group
MO
▲ PositiveMonetaryrelevance

Bank of America expects three Fed rate hikes in 2025, which benefits Altria as a dividend payer in a rising-rate environment.

Financials▲ · 2 stocks
Wells Fargo & Company
WFC
▲ PositiveMonetaryrelevance

Bank of America expects three Fed rate hikes in 2025, which benefits Wells Fargo as a dividend payer in a rising-rate environment.

Energy▲ · 1 stocks
Chevron Corp
CVX
▲ PositiveMonetaryrelevance

Bank of America expects three Fed rate hikes in 2025, which benefits Chevron as a dividend payer in a rising-rate environment.

Biotech & Genomic Medicine▲ · 1 stocks
Merck & Company Inc
MRK
▲ PositiveMonetaryrelevance

Bank of America expects three Fed rate hikes in 2025, which benefits Merck as a dividend payer in a rising-rate environment.

Critical Materials & Supply Chain▲ · 1 stocks
Artificial Intelligence▲ · 1 stocks
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