The sharp rise in energy prices kept consumer inflation at elevated levels in August. As a result, the Fed is clearly in no mood to back down from its hawkish stance just yet, with policymakers echoing a “higher for longer” mantra toward rates until prices cool. Coupled with rising bond yields, it's been a rough month for the equity markets, as investors' risk appetite takes a hit.
While today's action is providing a bit of relief from the heavy selling, the S&P 500 Index ($SPX) and the Nasdaq Composite ($NASX) have shed 4.7% and 6.0%, respectively, over the past month. In this type of environment, it's worth discovering - or rediscovering - the benefits of dividend stocks, which can help provide a buffer against periods of equity volatility by providing consistent passive income.
