Increasing inflation and lingering supply disruptions have fostered significant market volatility since the beginning of the year. The Russia-Ukraine conflict has added to investors' concerns. These challenges, along with surging oil prices, are expected to keep the stock market under pressure in the near term. According to Paul Sankey of Sankey Research, “There’s a major, physical, immediate outage that caught an already tight market with very low inventories.” Nevertheless, hopes of an economic rebound are still evident as worldwide COVID-19 restrictions continue to ease.
So, we think it could thus be wise now to invest in quality dividend stocks to secure a steady income stream. Optimistic investor sentiment about this space is evident in the Global X S&P 500 Quality Dividend ETF’s (QDIV) 6.7% returns in the past three months compared to the SPDR S&P 500 Trust ETF’s (SPY) 3.9% decline.
