Amid the continuing Russia-Ukraine conflict and worsening logistical disruptions, a worse than estimated year-over-year jump in the consumer price index to 8.5% in March has dampened investor sentiment significantly. However, many economists believe that inflation is nearing its peak, and the overall economic scenario might soon begin to improve. Ahead of corporate earnings releases, investors are optimistic about the stock market’s recovery prospects.
Furthermore, JPMorgan Chase CEO Jamie Dimon recently said that he remained “optimistic on the economy, at least for the short term.” Therefore, investors seeking to dodge market volatility in the near term and secure capital appreciation in the long run, could bet on fundamentally strong dividend stocks that have been beaten down lately. Daniel Milan, the managing partner of Cornerstone Financial Services, said, “Growing dividends from high-quality companies can make a significant positive impact on a portfolio.” Investors’ interest in the dividend stocks is evident in the SPDR S&P Dividend ETF’s (SDY) 4.3% returns over the past month.
