With both interest rates and inflation still stubbornly high, and concerns mounting about stretched equity valuations, stocks finished lower for the second week in a row on Friday. As investors await the next potential catalyst that could push this bull market higher, it's worth reconsidering an area of the market that has generally lagged the artificial intelligence (AI)-fueled rally - specifically, dividend-paying stocks.
After underperforming in 2023, many dividend stocks now trade at appealing valuations - and offer steady income to help offset bouts of market volatility, too. And the best of the best income stocks have been raising their payouts, too; already this year, companies like Coca-Cola (KO), DuPont (DD), and Baker Hughes (BKR) have all hiked their dividends, along with many more.
