by Ian Cooper

While we could see a good deal of volatility in 2024, with the election, markets could see higher highs. All with the Federal Reserve saying it could cut interest rates three to four times in 2024.

“The major takeaway from the December policy meeting is that the Federal Reserve is forecasting a soft landing, full employment and intends to reduce its federal funds policy rate by at least 75 basis points in 2024 to support the ongoing business expansions,” wrote Joseph Brusuelas, chief economist of account firm RSM, as quoted by CNN.

That being said, investors may want to look at stocks that could benefit in a lower-rate environment. Some of the top ones include:

First Solar (FSLR)

Over the last several months, solar stocks lost their flare.

All as U.S. and European demand began to sink, sending revenues for many solar giants significantly lower. Plus, we have to consider solar stocks were decimated by higher interest rates from the Federal Reserve, which kept reluctant consumers on the sidelines for most of the year. However, that crisis has created opportunity.

In fact, according to Bloomberg, “Electricity generated from US solar and wind systems will surpass power produced by burning coal for the first time next year, driven by surging panel installations. Developers are expected to install 23 gigawatts of solar capacity this year and an additional 37 gigawatts next year, making it the fastest-growing source of new generation.”

NewLake Capital Partners (NLCP)

With cannabis stocks seeing higher highs, keep an eye on lesser-known, high-yield dividend stocks, such as NewLake Capital Partners (NLCP).

With a yield of 10%, NLCP is a triple net-lease real estate investment trust (REIT) that provides capital to licensed cannabis companies. At the moment, NLCP owns 32 cultivation facilities and dispensaries, and recently saw its stock rally from about $12.50 to $15.95.

Helping, NLCP just increased its fourth quarter 2023 cash dividend to $0.40 per share of common stock. The dividend is equivalent to an annualized dividend of $1.60 per common share and is payable on Jan. 12 to shareholders of record as of Dec. 29.

Better, not only will the REIT benefit from lower interest rates in 2024, it’ll benefit from increased chatter on cannabis legalization leading up to the elections. We also have to remember that a large part of the U.S. population wants to see legalization. In fact, according to a recent Gallup poll, about 70% of U.S. adults say cannabis should be legal. 

Coca-Cola (KO)

Or look into Coca-Cola (KO), as investors push back into dividend stocks in a potentially lower-rate environment.

With a yield of 3.16%, the company just announced a quarterly dividend of 46 cents per common share, payable Dec. 15 to shareowners of record of the company as of the close of business Dec. 1. It’s now been paying out dividends for 61 years.

Better, the company just posted Q3 EPS of 74 cents, which beat estimates by five cents. Revenue of $12 billion – up 8.1% year over year – beat by $580 million. It also just raised its outlook again, noting profits could rise again at a faster pace of between 7% and 8%. Eventually, that could also lead to a higher dividend increase in 2024, as well.

“We delivered an overall solid quarter and are raising our full-year topline and bottom-line guidance in light of our year-to-date performance,” said James Quincey, Chairman and CEO of The Coca-Cola Company. “Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today while also laying the groundwork for the long term.”