In a logical world, one would think that with the Federal Reserve raising interest rates throughout the year, rates across the entire Treasury yield curve would rise. However, the exact opposite has happened. Since mid-June, benchmark 10-year and 30-year bond yields have fallen 23%. In fact, with fed funds now at 2.25% to 2.50%, the 10-year note is only 28 basis points higher.

Why does this happen? Most important for this is that the bond market senses that a recession, if it’s not here now despite the empirical data that says so, is definitely on the way, and it could be very ugly. Add to that the fact that the ‘peak inflation’ narrative was bolstered by weaker-than-expected Consumer Price Index figures this week, again sending buyers to Treasury markets, making lower rates further.

So what should income investors do? Look for quality stocks that can survive a turbulent market and pay big dividends. We’ve been sifting through our 24/7 research database on Wall St., looking for quality companies that, while perhaps off the radar, offer solid dividends and reliable. In addition, all are classified Buy through Wall Street.

It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.

Altria

This tobacco maker now offers value-oriented investors a great entry point, as it has been hurt by the slowdown in cigarette sales. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA holds 51% of the US cigarette market, led by its leading brand of Marlboro cigarettes.

Altria also owns more than 10% of Anheuser-Busch InBev, the world’s largest brewer. In 2008, it sold its international cigarette business to shareholders. The stock has taken a beating recently, as last month the US Food and Drug Administration announced a ban on all sales of Juul vape pens. The move came after calls from government officials and public health institutes who say Juul is focused on selling its nicotine products to teenagers. A court granted Juul’s request to stay the ban, allowing the company to continue selling the products while an appeal is filed against the decision.

While this is settled, it’s a safe bet that investors will still receive an 8.05% dividend. Deutsche Bank has a target price of $46 on Altria stock. The consensus target is higher at $49.54 and shares closed Wednesday at $44.74.

best buy

The need for electronics and equipment to set up a “work from home” office has been a huge tailwind for this major retailer, and what started as a pandemic necessity has become a trend. Best Buy Inc. (NYSE: BBY) is a leading consumer electronics specialty retailer in the United States and Canada. As of January 30, 2022, it had 1,144 stores.

These stores offer computer products, such as desktops, laptops, and peripherals; mobile phones with associated mobile network operator fees; networking products; tablets covering e-readers; smart watches; and consumer electronics including digital imaging, health and fitness, home theater, portable audio including headphones and portable speakers, and smart home products.

Its stores also offer household appliances, such as dishwashers, laundry detergent, ovens, refrigerators, blenders, coffee makers and vacuum cleaners; entertainment products consisting of drones, peripherals, movies, music, and toys, as well as hardware and software for games, virtual reality, and other software products; and other products, such as babies, food and beverages, luggage, outdoor goods and sporting goods.