The consequences of the Russia-Ukraine war and the potential for aggressive interest rate hikes by the Federal Reserve to control surging inflation are expected to prolong market uncertainty at least in the near term. However, a rebound still seems likely because the economy is expected to continue recovering this year. Furthermore, the market has absorbed most negatives and advanced since the beginning of last week.
Dividend stocks are expected to attract much more investor attention in the coming months because they help dodge market volatility by offering a steady income stream. Moreover, dividends paid by U.S. companies increased by 3.5% in 2021. Investors’ interest in high dividend-paying stocks is evident from the SPDR Portfolio S&P 500 High Dividend ETF’s (SPYD) 4.5% returns over the past three months, compared to the SPDR S&P 500 Trust ETF’s (SPY) 5.7% decline.
