These Value Stocks have Sustainable Yields above 7%

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Value stocks are making a comeback in 2024 as the Fed struggles to curb inflation and bring down interest rates. Investors prefer value stocks in high inflation because they are less affected by high interest rates compared to growth stocks, which suffer due to the high cost of credit required for expansion. This makes the current earnings of value stocks more preferable to the future earnings promised by growth stocks.

With the Fed hinting that it will keep interest rates high until inflation is lowered to 2%, value stocks are becoming the best stocks to invest in today. Below are the top dividend-paying value stocks to buy in May 2024 that offer yields above 7%.

Altria Group, Inc. (NYSE:MO), the world’s second-biggest tobacco company, is our first pick for value stocks with high yields and a good dividend history. The stock is performing exceptionally well in May 2024 thanks to the fears of a looming recession, as it is considered a safe haven in market downturns due to its recession-proof products. Altria Group offers an impressive annual dividend yield of 8.46% and has been paying high-yield dividends for the last 52 years, regularly appearing in the list of the highest dividend-paying stocks in the S&P 500.

Ares Capital Corporation (NASDAQ:ARCC) is another high-yield value stock worth considering and is one of Warren Buffet’s top picks. Buffet is considered the most successful value investor today. Ares Capital offers a mouth-watering annual dividend yield of 8.95% and has paid increasing dividends for the last 13 years. As a company that offers financing solutions to middle-market firms, Ares Capital tends to perform better in a high interest rate environment.

Diversify With These High-Yield Alternatives

While these value stocks offer attractive yields, investors should also consider alternative investments that can provide high returns and diversification. Two such opportunities are the Arrived Private Credit Fund and Basecamp Alpine Notes from EquityMultiple.

The Arrived Private Credit Fund simplifies investing in short-term financing for real estate projects, providing attractive yields secured by quality residential real estate. With target annualized dividends of 7-9%, quarterly liquidity, and a diversified pool of real estate-backed loans, this fund is an excellent complement to equity investing.

Click here to learn more about the Arrived Private Credit Fund.

Basecamp Alpine Notes from EquityMultiple offer another powerful short-term cash management tool, with a target APY of 9.00% over a 3-month term and a minimum investment of only $1,000. These notes provide high liquidity and compelling rates with compounding interest, making them an ideal choice for investors looking to build their income-generating portfolio. As a special offer, Basecamp Alpine Notes are exclusive to first-time investors on the EquityMultiple platform, giving new investors a unique opportunity to take advantage of these favorable terms.

Click here for more details about Basecamp Alpine Notes.

In conclusion, while value stocks like Altria Group and Ares Capital Corporation offer sustainable yields above 7%, investors should also consider high-yield alternative investments like the Arrived Private Credit Fund and Basecamp Alpine Notes from EquityMultiple. By diversifying your portfolio with a mix of value stocks and alternative investments, you can create a more resilient and balanced approach to generating income in any market condition.

This article These Value Stocks have Sustainable Yields above 7% originally appeared on Benzinga.com