Attractive Dividend Stocks in Focus

Dividend stocks are of particular interest in times of declining interest rates. As fixed-income investments lose their appeal, investors are increasingly drawn to dividend stocks. The recent onset of a new cycle of falling interest rates invites investors to acquire dividend stocks early to benefit from an anticipated rotation into these securities. A look at the three highest-yielding dividend stocks in the Nasdaq-100 reveals interesting options. First, Kraft Heinz: The company, supported by Warren Buffett's Berkshire Hathaway, has struggled with growth issues since its merger and was forced to take a billion-dollar write-down on core brands in 2019. Although the business model is profitable, dividend growth remains subdued with a yield of 4.6%. Given the stagnant business and dividend development, Kraft Heinz may not be the best choice at this time. Diamondback Energy, a prominent energy company on the Nasdaq, also attracts attention. Following the acquisition of Endeavor Energy Resources for $26 billion, Diamondback has strengthened its position in the Permian Basin. The company's variable dividend policy offers a promising outlook, provided it can benefit from the acquisition and oil prices remain stable. Another interesting stock is Exelon, a rare utilities stock on the Nasdaq. In recent years, Exelon has achieved stable growth through a savvy business strategy. With a dividend yield of 3.8% and positive business development, Exelon appears to represent a solid long-term investment decision, even though analyst opinions vary.