With the Federal Reserve's benchmark rate now sitting at 3.64%, its lowest level since fall 2022, many income-focused investors have been moving out of traditional bonds and into dividend-paying stocks to find better yield.
That shift has already shown up in performance in early 2026. The Schwab U.S. Dividend Equity ETF (SCHD) is up more than 11.6% year-to-date (YTD), while the S&P 500 ($SPX) is in negative territory -5.38% over the same period. Also, energy stocks are out in front, offering an average yield of roughly 4.2% compared to about 1.3% for the broader market.
