While most economists expect a decline in inflation in 2023, many are doubtful that this will herald a fundamental disinflationary trend. Moreover, fears that the continued monetary policy tightening could push the economy into a recession will keep the stock market volatile.
Therefore, dividend-paying stocks could be ideal investments now. These stocks allow investors to cushion their portfolios by generating a stable income. Investors’ interest in dividend stocks is evident from the SPDR S&P Dividend ETF (SDY) 4.5% returns over the past month.
