Over the past five-plus years of a near-zero interest rate environment, dividend-paying stocks - especially high dividend stocks - have been an attractive option for investors. But rising rates on the horizon necessarily change dividend stocks' favor in investors' portfolios.
Earlier this month, the Federal Open Market Committee (FOMC) met and decided to alter language on when the Fed would start to consider an increase in interest rates. The new language provides the central bank with greater discretion to implement a rate increase, i.e. regardless of the national unemployment rate, which sits today at 6.5%.