Stock markets have been volatile in the wake of Russia's invasion of Ukraine and on concerns around the Fed's tightening monetary policy to combat inflation. The Russia-Ukraine war has aggravated the current supply chain crisis due to sanctions against Russia levied by several countries. This has caused increased production costs and a shortage of semiconductors and other raw materials for the automakers.
During this period of market turbulence, we think investing in high dividend-yielding stocks could help generate a steady stream of income. Amid the increasing market volatility, dividend stocks are safer and more dependable than growth stocks. Furthermore, analysts predict a less aggressive Fed rate hike following the escalating geopolitical tensions, given the potential economic impact of the sanctions imposed against Russia.
