High-yielding U.S. stocks stand to benefit from Fed shift

U.S. stocks with relatively high dividend yields are more appealing now that the Federal Reserve has backed away from raising interest rates, according to Brian Belski, chief investment strategist at BMO Capital Markets. He compared the yield on the iShares Select Dividend exchange-traded fund with yields on the S&P 500 Index and 10-year Treasury notes in a report Wednesday. Both yield gaps have widened this year, according to data compiled by Bloomberg, which means the ETF offers more relative value. “This would be an opportune time” to buy stocks with higher yields, Belski wrote.