During periods of stock market weakness, investors can still generate yield from high-quality dividend stocks. The Federal Reserve has already raised interest rates by 0.75% so far in 2022, but there are plenty of high-yield dividend stocks paying 6% or more at current prices.
Not only could these stocks service as a source of regular income, they could also generate valuation upside if the stock market recovers. Unfortunately, high yield dividend stocks are only as good as the underlying companies. Dividend cuts are often the first line of defense if a company runs into balance sheet problems.
