The equity markets have remained under pressure since the beginning of 2022, with benchmark indexes down double digits year-to-date. However, markets are gradually absorbing the Fed’s tightening monetary policy, as evidenced by the S&P 500 index’s marginal gains over the past five days. Nonetheless, markets are expected to remain volatile, given the continuing geopolitical tensions and Fed’s aggressively hawkish tilt.
High-yielding dividend stocks are expected to shield investors from the ongoing market fluctuations. Their ability to pay steep dividends amid volatility indicates their financial strength. Furthermore, according to FactSet, dividends per share for the S&P 500 could grow 8% year-over-year, up from the 7% early January 2022 forecast. Investors’ interest in the high-yielding dividend stocks is evident in the iShares Core High Dividend ETF’s (HDV) 9.5% returns over the past six months.
