Top-Performing Dividend Stocks for Q3

What the election could mean for big tech, where to invest in Q4, Fed rate outlook. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=58297&elqTrackId=998ede70de9542898eded2c10a51a006&elq=ab2edb93ea714918a5f32a80827a1ad6&elqaid=58297&elqat=1&elqCampaignId=29733&elqak=8AF5ABFA36CB1C7FE9F66682D442901CAEAD9F4741C9DD0B1EF829F176227C962583) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [10 Top-Performing Dividend Stocks of Q3 2024]( - [Where We See Opportunities for Investors at the Start of Q4]( - [What the Election Could Mean for Big Tech Stocks]( - [Strong September Jobs Report Sets Stage for Smaller Fed Rate Cut]( - [Q3 in Review and Q4 2024 Market Outlook]( - [Our Top Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds]( - [Best- and Worst-Performing Stocks of Q3 2024]( - [Morningstar’s Guide to Investing in Stocks]( The fourth quarter started off with a bang, thanks to a September jobs report that blew away expectations for growth. It’s good news for the economy that a recession is nowhere to be seen, but for investors who only a week or so ago were banking on another big Federal Reserve rate cut, this is cause for rethinking. I checked in with Morningstar senior US economist Preston Caldwell for [his take on the jobs report]( and what it could mean for the Fed’s next meeting. And you can read his [longer-term look at the economy here](. With this rally, the stock market continued the path it charted in the third quarter. But for bonds, it was a bit of a reality check after gains over the last three months. Sarah Hansen looks back at the third quarter across stocks, bonds, and other markets in [our third-quarter wrap-up in 13 charts](. We’ve also pulled together a list of the [top-performing dividend stocks for the quarter]( (like IBM), a roundup of the [best- and worst-performing stocks]( (see where Palantir landed), and a look at [how the largest exchange-traded funds fared](. (Vanguard Total International Stock Index, anyone?) What’s next for the markets? David Sekera, chief US market strategist, has [his outlook for the fourth quarter]( with thoughts on where Morningstar’s stock analysts see the best opportunities for investors. As for that other major event in November, Morningstar equity analyst Malik Ahmed Kahn examines what [the election could mean for big tech stocks](. For one-stop shopping, you can find [all our third-quarter reviews and fourth-quarter outlooks here](. That includes our outlooks for the different stock sectors, including [utilities]( [healthcare]( and [real estate](. Lastly, Emelia Fredlick has pulled together a great primer on Morningstar’s process for picking stocks. It’s a great explainer on what our “moats,” fair value estimates, and star rating system mean. [Check it out](. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [10 Top-Performing Dividend Stocks of Q3]( [10 Top-Performing Dividend Stocks of Q3]( IBM and Entergy are among the quarter’s high-yielding winners. Bella Albrecht [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Strong September Jobs Report Sets Stage for Smaller Fed Rate Cut]( [Strong September Jobs Report Sets Stage for Smaller Fed Rate Cut]( String of weaker-than-expected readings on hiring comes to an end. Tom Lauricella [Best- and Worst-Performing Stocks of Q3 2024]( [Best- and Worst-Performing Stocks of Q3 2024]( Palantir and AppLovin rank among the best stocks for the quarter, while the worst include DexCom and Moderna. Bella Albrecht [Q3 in Review and Q4 2024 Market Outlook]( [Q3 in Review and Q4 2024 Market Outlook]( Our analysts put Q3′s performance trends for stock sectors, bonds, and funds into perspective, and look ahead with a fresh outlook for the fourth quarter. Tom Lauricella [Q4 Stock Market Outlook: Where We See Opportunities for Investors]( [Q4 Stock Market Outlook: Where We See Opportunities for Investors]( The great rotation out of overvalued and overextended large-cap growth stocks has further room to run. David Sekera [New 4-Star Stocks]( [New 4-Star Stocks]( Mizuho Financial Group and IQVIA are among the stocks that fell into undervalued territory. Bella Albrecht [A More Resilient Bond Market]( [A More Resilient Bond Market]( Higher par-weighted coupons are good news. Alec Lucas [How the Largest US Stock Funds Did in Q3]( [How the Largest US Stock Funds Did in Q3]( Value funds like Vanguard Value and American Funds American Mutual outperformed. Gabe Alpert [Top-Performing Stock ETFs of the Quarter]( [Top-Performing Stock ETFs of the Quarter]( Invesco S&P 500 High Dividend Low Volatility ETF and SPDR Portfolio S&P 500 High Dividend ETF were among the best-performing ETFs in Q3 2024. Bella Albrecht [3 ETFs Quietly Outperforming the Market]( [3 ETFs Quietly Outperforming the Market]( Don’t overlook these options. Daniel Sotiroff [6 Top-Performing Large-Growth Funds]( [6 Top-Performing Large-Growth Funds]( Fidelity dominates the list of best-performing large-growth funds. Frank Lee [3 Unloved Funds With High Ratings]( [3 Unloved Funds With High Ratings]( Don’t turn your back on these funds despite persistent outflows. Megan Pacholok [2 Cheap Stocks Top Managers Have Been Buying]( [2 Cheap Stocks Top Managers Have Been Buying]( A couple of the best fund managers like these undervalued stocks. Susan Dziubinski [Top Stocks to Own From the Best Fund Managers]( [Top Stocks to Own From the Best Fund Managers]( Find new ideas for your watchlist from money managers Morningstar considers to be “smart money” investors. Susan Dziubinski [High-Quality Bond Funds Shine in Q3 2024]( [High-Quality Bond Funds Shine in Q3 2024]( How some of our favorite managers fared as interest rates fell. Tom Murphy [Our Top Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds]( [Our Top Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds]( Stocks rebounded as the rotation from tech finally took hold and the Fed cut rates. Sarah Hansen, Bella Albrecht [Jack Nelson: ‘Investing in Emerging Markets Should Primarily Be About Analyzing Individual Businesses’]( [Jack Nelson: ‘Investing in Emerging Markets Should Primarily Be About Analyzing Individual Businesses’]( A sustainable investor makes the bottom-up case for an unloved asset class. Christine Benz, Dan Lefkovitz [What’s Happening in the Markets This Week]( [What’s Happening in the Markets This Week]( CPI report, and earnings from BlackRock, Tilray, JPMorgan, and Wells Fargo. Frank Lee [What the Election Could Mean for Big Tech Stocks]( [What the Election Could Mean for Big Tech Stocks]( New regulations could lead ‘Magnificent Seven’ companies like Microsoft and Alphabet to pull back on mergers and acquisitions. Malik Ahmed Khan [Morningstar’s Guide to Investing in Stocks]( [Morningstar’s Guide to Investing in Stocks]( How our approach to investing can inform your stock-picking process. Emelia Fredlick Chart of the Week [We Expect GDP Growth to Weaken Until Fed’s Rate Cuts Kick In]( [We Expect GDP Growth to Weaken Until Fed’s Rate Cuts Kick In]( Our economic forecast is optimistic in the long run thanks to labor supply and productivity expansion. Preston Caldwell [See More]( Share: [facebook]( [twitter]( [linkedin]( Quarter-End Insights [Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities]( In this sector, our favored stocks are Albemarle, Dow, and FMC. Andrew Bischof, Travis Miller [Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts]( Our favorite stocks in this sector are Nike, Kohl’s, and Bath & Body Works. Erin Lash [Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue]( Estee Lauder, Kraft Heinz, and Dollar General are our top consumer defensive stocks. Erin Lash [Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was]( Our favorite stocks in this sector include Comcast, Disney, and Alphabet. Michael Hodel [Energy: OPEC Faces Hard Supply Decision in Latter Half of 2024]( APA, Schlumberger, and Exxon Mobil are our top picks in the energy sector. Joshua Aguilar [Financial Services: Sector Doing Well Heading Into Rate-Cutting Cycle]( Our favorite financial services stocks include US Bancorp, PayPal, and MarketAxess. Michael Wong [Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued]( Humana, Baxter, and Moderna are our top picks in this sector. Karen Andersen [Industrials: Many Stocks Overvalued After Q3 Outperformance]( Our top stocks in this sector are Chart Industries, Wesco, and CNH Industrial. Brian Bernard [Real Estate: Performance Continues to Be Driven by Interest-Rate Movements]( Kilroy, Healthpeak, and Sun Communities are our top picks in the real estate sector. Kevin Brown [Technology: Strength Continues, With Software Presenting the Best Buying Opportunities]( Our top picks in the technology sector are NXP, Microsoft, and STMicroelectronics. Dan Romanoff [Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks]( In the utilities sector, our top picks are NiSource, Evergy, and WEC. Andrew Bischof, Travis Miller [Recent Company Earnings]( Discover actionable opportunities today with our earnings coverage and analyst insights. What are the secrets to a healthy, happy, and wealthy retirement? Find out with Christine Benz's new book, "How to Retire". [Order Now.]( Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602