Dividend stocks can be an appealing option when markets are volatile, as they are an excellent source of passive income. Hence, investors could consider buying fundamentally sound dividend stocks PepsiCo, Inc. (PEP), International Business Machines Corporation (IBM), and AT&T Inc. (T) for their retirement portfolios.
The International Monetary Fund projects that U.S. interest payments on federal debt will increase to 3.2% of GDP by fiscal year 2024, up from 2.4% in fiscal year 2023, driven by rising interest rates. This highlights persistent fiscal challenges. However, there is optimism that a potential interest rate cut by the Federal Reserve could help mitigate the situation, and many are looking to this as a possible solution.
