2 Dividend Stocks to Buy Even as New Fed Chair Kevin Warsh Holds Interest Rates Steady

2 hours ago 6

Rick Munarriz, The Motley Fool

Sun, June 28, 2026 astatine 10:27 AM CDT 4 min read

It didn't instrumentality agelong for caller Federal Reserve Chair Kevin Warsh to marque immoderate waves. The Federal Open Market Committee unanimously approved the determination to clasp the national funds complaint dependable astatine the 3.5%-to-3.75% scope this month. But that doesn't mean the Fed won't propulsion rates higher aboriginal this year. Inflation, aft all, remains stubbornly supra the Fed's 2% goal.

However, the determination should springiness investors immoderate breathing country arsenic they see dividend stocks to marque up for debased yields successful today's fixed-income environment. Two names I similar present see Sirius XM Radio (NASDAQ: SIRI) and Upbound (NASDAQ: UPBD). Both dividend stocks could payment from the June 17 determination to clasp involvement rates steady. Let's instrumentality a person look astatine these 2 high-yielding stocks.

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1. Sirius XM

The country's lone subordinate successful premium outer vigor has been a astonishing victor this year. Sirius XM is up 42% successful 2026, arsenic income investors gravitate toward this escaped currency travel generator that's showing signs of turning the corner. Even aft the stock's pop, Sirius XM's charismatic 3.8% output is higher than that of the apical wealth marketplace funds.

You whitethorn deliberation outer vigor arsenic a premium level peaked years ago, and you're right. Total subscribers for the work person fallen from its all-time precocious six years ago, but it's not arsenic atrocious arsenic you think. Today's full of 33 cardinal subscribers is conscionable 6% beneath the platform's peak. Revenue is little than 5% beneath its all-time precocious acceptable successful 2022, and adjusted nett income has ne'er been higher.

This media banal is simply a wealth machine. Sirius XM expects to make $1.35 cardinal successful escaped currency travel this year. It's returning astir of that wealth to shareholders done its chunky dividend and assertive banal buybacks. The erstwhile is keeping income investors close. The second is helping to prop up per-share profitability to today's grounds level.

Why does holding involvement rates dependable assistance Sirius XM? It's an amusement level chiefly consumed successful cars and trucks, and the past happening it needs is higher involvement rates scaring distant imaginable new-car buyers.

Sirius XM is starting to get better. After 3 years of humble top-line declines, gross has risen marginally successful back-to-back quarters.

2. Upbound

Despite its torrid tally this year, you tin inactive bargain Sirius XM for conscionable 9 times guardant earnings. If you privation thing with an adjacent little multiple, effort Upbound connected for size. The genitor institution of Rent-A-Center expects to gain betwixt $4.00 and $4.35 a stock successful 2026. At its existent price, Upbound enters the caller trading week trading conscionable shy of 5 times this year's adjusted earnings.

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