Rising oil and gas prices, worsening inflation owing to global geopolitical tensions and logistical hurdles, and the potential for aggressive interest rate hikes later this year are expected to keep the stock market under pressure in the near term. However, according to Gus Faucher, senior vice president, and chief economist of The PNC Financial Services Group, the outlook for the U.S. economy is still good. Therefore, investing in dividend stocks that are well-positioned to capitalize on the economic recovery could be a wise decision.
Investors’ interest in quality dividend stocks is evidenced by the Global X S&P 500 Quality Dividend ETF’s (QDIV) 4.4% returns in the past three months compared to the SPDR S&P 500 Trust ETF’s (SPY) 5.7% decline.
