The stock market has been in a tailspin in 2022 due to the raging inflation and tightening monetary policy. Moreover, U.S. GDP fell 0.9% in the second quarter, adding to the recession fears. Additionally, the personal consumption expenditures price index rose 6.8% in June, marking the biggest 12-month move since January 1982.
With heightened volatility in the market, dividend investing could be a wise strategy to ensure a stable income stream. BofA strategists write, “as cash grows more valuable amid Fed hiking, we expect dividend yield and bird-in-the-hand strategies to continue to outperform” in the second half of the year.
