Due to the Russia-Ukraine war and concerns surrounding 40-year high inflation rates, the major equity indexes were pushed into the correction territory earlier this year. The Fed approved an interest rate hike of 25 basis points two weeks ago to combat skyrocketing inflation rates and indicated that it planned six more hikes this year. Following the Fed’s aggressive monetary policy plan, the stock market is projected to remain volatile in the near term.
During a market downturn, investors are drawn toward high-yield dividend stocks. Dividend stocks are known to withstand market fluctuations and help investors’ portfolios weather volatility. To ensure a steady income stream, quality dividend stocks should be the top picks for investors amid uncertain market conditions. Investors’ interest in dividend stocks is evident in iShares Core High Dividend ETF’s (HDV) 12% gains over the past six months.
