Inflation reached a record high of 9.1% in June, and traders are betting over a full-point federal rate hike in July. The declining confidence has led the S&P 500 to shed 19.6% year-to-date. Investors are taking up buying the dip strategy to ensure long-term returns.
However, investing in dividend stocks with a strong dividend paying history could ensure a stable income stream as investors try to strengthen their portfolios amid looming recession fears. Michael Clarfeld, portfolio manager at ClearBridge Investments, recently said, “In a world where inflation is eroding purchasing power, dividends are a way to stay ahead.”
