
The Federal Reserve recently raised its short-term borrowing rate by 75 basis points to a target range of 3.75%-4%, the highest since January 2008. High borrowing costs and inflation continue to worry investors about a possible recession.
While dealing with many economic headwinds and market volatility, investors might make emotionally charged investment decisions that may be irrational. In a deteriorating macroeconomic climate, dividends can help generate a stable income and provide a buffer against inflation.