The Globe and Mail reports in its Saturday edition that employment numbers have turned weaker, which has raised the odds of rate cuts. The Globe's David Berman writes that CIBC economist Ali Jaffery expects the Fed will cut its key rate next week and again in October, despite sticky inflation in August. Douglas Porter, chief economist at the Bank of Montreal, expects the Bank of Canada will cut its key rate three times through the start of 2026. The potential impact on dividend-paying stocks remains murky. Not only are yields already low, but lofty price-to-earnings ratios suggest that stocks are fully valued based on expected profits. Canada's Big Six banks are trading near the top end of their 10-year valuation range, while dividend stalwarts such as Fortis and TC Energy are well above their 10-year averages, according to S&P Global Market Intelligence. You can still find attractive yields, and low valuations, among Canadian telcos such as BCE and Telus. The sector's sensitivity to interest rates is now questionable, despite being known as bond proxies. That is because key players are struggling with more important matters, such as high debt levels and intense competition, which has weighed on their share prices.