Though inflation has been subsiding, it is still up by 4% compared to last year, with a slight increase of 0.1% between April and May, according to the U.S. Bureau of Labor Statistics. While this is certainly an improvement over the last year, it still leaves investors concerned about a possible recession in the second half of 2023.
Which is why many investors are looking at dividend stocks to provide passive income. Dividend stocks are shares of publicly traded companies that regularly distribute a portion of their earnings to shareholders in the form of dividends. A dividend is a payment made by a company to its shareholders as a reward for owning its stock. Dividend stocks are popular among investors who seek a regular income stream from their investments.
