<div id="readability-page-1"><div><div>Amid persistent geopolitical uncertainty, global stocks and funds with a strategic focus on high dividends are experiencing a significant resurgence in investor interest. This expert highlights the top three stocks and funds that investors could consider to seize the opportunity.What Happened: After two years of subdued demand, these funds are once again drawing substantial inflows, driven by a confluence of economic factors, most notably the elevated interest rates maintained by the Federal Reserve.As highlighted by Eugenia Mykuliak, the founder and executive director at B2PRIME Group, the renewed popularity of dividend-yielding instruments was reflected in April 2025 fund flow data. The equity income ETFs recorded an impressive $4.9 billion in net flows.Industry leaders such as the Schwab US Dividend Equity ETF SCHD and Vanguard Dividend Appreciation Index Fund ETF VIG have been at the forefront of this trend.“Donald Trump‘s calls for lower rates and the Fed’s reluctance, which kept rates high, are the principal rationales here. As we know, high interest rates make bonds less attractive, prompting investors to shift towards dividend-paying stocks,” Mykuliak told Benzinga.Mykuliak points to compelling examples citing Kroger Co. KR, Chevron Corp. CVX, and BP PLC BP. “C-bond dividend yields offered by companies like Kroger (~9.4% dividend yield), Chevron (4.78%), and BP (6.59%) appear to be competitive so far,” she highlighted.This data underscores that dividend yields are currently either close to or, in many cases, significantly higher than the 10-year Treasury bond yield of 4.37%, making them a more attractive proposition for income-seeking investors.“So current dividend yields remain competitive relative to long-term government bonds, particularly for high-quality dividend stocks,” Mykuliak states.Furthermore, Mykuliak highlights that “geopolitical tensions (most notably, tariffs) and economic uncertainty make dividend stocks a safer investment.”Looking ahead, the momentum for dividend stocks is expected to persist. Mykuliak reiterates, “Once again, the Fed’s stance amid overall economic uncertainty tilts toward keeping interest rates high, making dividends more attractive.”<div><div><div>Trending Investment Opportunities</div></div></div>Why It Matters: “All in all, dividend stocks are strategically positioned to benefit from 2025's macroeconomic landscape, offering higher yields than bonds and greater stability than growth stocks,” Mykuliak concludes.She advises investors to “prioritize high-quality, diversified dividend portfolios (tapping into the ETF universe for convenience, bearing in mind, for example, SCHD, VIG) to capitalize on this trend while mitigating the known risks.”However, she cautions investors to be aware of potential risks, including dividend cuts and the possibility of current economic uncertainty escalating into a more severe slowdown, which could potentially temper future inflows.Price Action: Here’s how the stocks and ETFs mentioned by Mykuliak have performed.The SPDR S&amp;P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Friday. The SPY was up 0.17% at $638.16, while the QQQ advanced 0.35% to $568.37, according to Benzinga Pro data.<ul> <li>Citi Strata Elite Credit Card Launched To Attract Affluent Customers: Here’s How It Stacks Up Against Amex Platinum, JPMorgan Chase Sapphire Reserve</li> </ul>Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image Credit: RYAN MERCER/NORTHJERSEY.COM via Imagn Images</div></div></div>

Amid geopolitical uncertainty, dividend-yielding stocks are gaining investor interest, with $4.9 billion in inflows recorded in April 2025. Expert Eugenia Mykuliak highlights Kroger, Chevron, and BP as top picks, noting their competitive dividend yields compared to 10-year Treasury bonds. High interest rates make bonds less attractive, prompting a shift towards dividend stocks. Mykuliak advises investors to focus on high-quality, diversified dividend portfolios while being cautious of potential risks like dividend cuts and economic slowdowns. The momentum for dividend stocks is expected to continue as the Fed maintains high rates.

- Global stocks and funds focused on high dividends are seeing renewed investor interest due to persistent geopolitical uncertainty and elevated interest rates from the Federal Reserve.  
- In April 2025, equity income ETFs recorded $4.9 billion in net flows, with notable funds like Schwab US Dividend Equity ETF and Vanguard Dividend Appreciation Index Fund leading the trend.  
- Experts suggest that dividend stocks offer competitive yields compared to long-term government bonds, making them attractive for income-seeking investors amid economic uncertainty.

These 3 Dividend-Yielding Stocks Could Outperform As High Fed Rates Spark $4.9 Billion Inflows: Expert