Citigroup Says Fed Cuts Rates 3 Times in 2025 – Grab These 7% Dividend Giants Now
Reuters reported this week that Citigroup now expects the Federal Reserve to lower interest rates three times this year, dropping the fed-funds rate 75 basis points, or 3/4 of 1%. While making the call, they also pushed the first interest rate cut to September from July, a move we have discussed recently as well. Two additional cuts are expected in October and December. President Trump has pushed for the Fed to cut rates, citing the European Union and other Central banks around the world that have already lowered rates. While the economy has slowed some, the recent jobs report came in above expectations. One thing is sure: if the Fed lowers rates three times this year, it could jump-start the economy in a big way.
24/7 Wall St. Key Points:
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High-yield dividend stocks could explode higher with three interest rate cuts
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Quality passive income stocks yielding 7% and more will be in big demand as rates drop
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Growth and income investors could be in for a stellar last half of 2025
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There are over 12,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for solid companies yielding at least 7% with solid dividend coverage. Four well-run companies hit our screens, and all look like timely buys now.
Why do we cover dividend stocks?
Dividend stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Apple Hospitality REIT
Apple Hospitality REIT owns one of the largest portfolios of upscale, select-service hotels in the United States. Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust that pays a solid monthly dividend and distinguishes itself in the market with its unique offerings.
The Company comprises 224 hotels with more than 30,066 guest rooms in 87 markets throughout 37 states, as well as one property leased to third parties.
Apple Hospitality REIT’s portfolio comprises 100 Marriott-branded hotels, 119 Hilton-branded hotels, and five Hyatt-branded hotels.
Its hotels operate primarily under Marriott or Hilton brands. They are operated and managed under separate management agreements with 16 hotel management companies, including:
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Hilton Garden Inn
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Hampton
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Courtyard
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Residence Inn
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Homewood Suites
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SpringHill Suites
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Fairfield
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Home2 Suites
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TownePlace Suites
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AC Hotels
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Hyatt Place
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Marriott
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Embassy Suites
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Aloft
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Hyatt House
Apple Hospitality hotels are in various states, including Alaska, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Kansas, Louisiana, Michigan, and others.
Energy Transfer
Energy Transfer is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a substantial distribution. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all of the major domestic production basins.
The company is a publicly traded limited partnership with core operations that include:
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Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
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Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
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NGL fractionation
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Various acquisition and marketing assets
Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.
Through its ownership of Energy Transfer Operating, L.P., formerly known as Energy Transfer Partners, L.P., the company also owns Lake Charles LNG Company, the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco LP (NYSE: SUN), and the public partner interests and 39.7 million standard units of USA Compression Partners, LP (NYSE: USAC).
Morgan Stanley has assigned an Overweight rating, accompanied by a $26 target price.
Healthpeak Properties
This leading company invests in real estate related to the healthcare industry, including senior housing, life science, and medical offices. Healthpeak Properties, Inc. (NYSE: DOC) is a fully integrated real estate investment trust (REIT).
The Company acquires, develops, owns, leases, and manages healthcare real estate across the United States. It owns, operates, and develops real estate focused on healthcare discovery and delivery.
Healthpeak Properties segments include:
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Lab
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Outpatient medical
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Continuing care retirement community (CCRC).
The Outpatient medical segment owns, operates, and develops outpatient medical buildings, hospitals, and lab buildings.
The lab segment properties contain laboratory and office space, and are leased primarily to:
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Biotechnology
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Medical device and pharmaceutical companies
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Scientific research institutions
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Government agencies
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Organizations involved in the life science industry
Its CCRC segment is a retirement community that offers independent living, assisted living, memory care, and skilled nursing units, providing a continuum of care within an integrated campus.
Telus
This is an off-the-radar telecommunications and tech company with excellent upside potential. Telus Corp (NYSE: TU) provides a range of telecommunications technology solutions, which include:
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Mobile and fixed voice and data telecommunications services and products
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Healthcare services
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Software and technology solutions
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Agriculture and consumer goods services, such as software, data management, and data analytics-driven smart-food chain and consumer goods technologies, and digital experiences, as well as related equipment.
Data services include Internet protocol, television, hosting, managed information technology, cloud-based services, and home and business security and automation.
TELUS Digital, a subsidiary of the Company, provides a portfolio of end-to-end, integrated capabilities, including:
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Digital solutions, such as cloud solutions and automation
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Trust, safety, and security services
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Artificial intelligence (AI) data solutions, including proficiency in computer vision, front-end digital design, and consulting services
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