According to Bank of America, as investors begin to tap into the $6 trillion in money market funds, dividend-paying stocks are expected to soar in the second half of this year.The bank's strategist Savita Subramanian referred to dividend trading as &#34;painful trading,&#34; indicating that most investors are not adequately prepared for the potential rise in such stocks.Subramanian stated in a report this week, &#34;With over $6 trillion parked in U.S. money market funds as the Fed prepares to cut rates, bond funds have seen record inflows year-to-date, but we think there are more opportunities in equities for yield-seeking investors.&#34;The report highlights that the actual return potential of over 200 S&amp;P 500 index component stocks exceeds a 2% yield on 10-year Treasury bonds, with approximately 75% of these stocks being undervalued by professional investors.Companies with the highest dividend yields in the S&amp;P 500 index include Walgreens Boots Alliance, Altria, Verizon, Ford, and AT&amp;T. While the overall dividend yield of the S&amp;P 500 index is around 1.25%, nearly 300 component stocks have yields higher than this average level.Subramanian stated, &#34;Overall, we expect dividends to account for a larger proportion of returns.&#34;Another Wall Street strategist, Brian Belski of Montreal Bank, expects significant returns from dividend-paying stocks, especially after their underperformance since the stock market bottomed in October 2022.Belski stated in a note on Tuesday, &#34;We believe these stocks have turned a corner, and recent relative strength may continue over the next few months.&#34; He explained, &#34;As the Fed may now cut rates earlier than previously expected, longer-term yields may decline, which should be supportive for dividend-paying stocks.&#34;Some of the high dividend-paying stocks recommended by Belski include AbbVie, Chevron, Duke Energy, Gilead Sciences, and Pfizer.As interest rates are set to decline, investors are chasing higher returns, and dividend-paying stocks may be an area in the stock market that is temporarily out of favor but will eventually thrive

.SPX

.DJI

.IXIC

With $60 trillion in potential, this corner of the US stock market may shine!