After the Federal Reserve’s first interest rate hike in three years last week, Jerome Powell’s plan to raise rates more aggressively this year, if needed, dampened investor sentiment yesterday. Thus, dividend investing is expected to gain popularity in response to the uncertain market conditions.
Dividend stocks with strong earnings growth potential from companies with robust financials could witness price appreciation in the coming months. So, these stocks could be ideal picks for investors. And investors’ interest in dividend stocks is evident in the iShares Select Dividend ETF’s (DVY) 6.3% returns over the past three months compared to the SPDR S&P 500 Trust ETF’s (SPY) 4% decline.
