The market expects the Federal Reserve this week to cut interest rates for the third time in 2025. That could be good news for dividend-paying stocks — and we have a lot of them in the portfolio. The reason for that dynamic? Fed rate cuts can weaken the appeal of assets that compete with dividend stocks for investment dollars, such as bank CDs, money market funds, and U.S. Treasurys. The interest rate offered by those assets typically follows policy rates lower. If those assets start to look less attractive than before, investors who are looking for income may look to move their money into dividend-paying stocks. Historically, CDs, money market funds, and shorter-term Treasurys — all considered safe places to park cash while earning some interest — have not offered returns high enough to p

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