Since the beginning of the year, the stock market has been volatile on concerns over multi-year-high inflation and expectations of aggressive central bank interest rate increases. Furthermore, the war between Russia and Ukraine and a possible fourth COVID-19 wave in China are raising concerns over deepening supply chain disruptions, adding fuel to the market’s volatility.
The sanctions and reverse sanctions against Russia are creating chaos in the markets because they are likely disrupting an already troubled supply chain. Amid this environment, betting on blue-chip stocks that offer high dividend yields could be one of the best strategies to generate stable returns and a portfolio income stream. Investors’ interest in blue-chip stocks is evident in the Fidelity Blue Chip Value ETF’s (FBCV) 3.1% returns over the past week.
