As the Federal Reserve tries to reduce rising prices by hiking interest rates, borrowing and spending have become costlier for businesses and individuals. “Borrowing costs for homebuyers, car buyers, and credit card borrowers have increased at the fastest pace in decades,” stated chief financial analyst Greg McBride.
As the current situation is not expected to ease anytime soon, investors can take advantage of dividend-paying stocks to protect themselves against high inflation and uncertain market conditions. Investors’ interest in dividend stocks is evident from SPDR S&P Dividend ETF’s (SDY) 6.9% return over the past month.
