The economy has experienced a slowdown for two consecutive quarters this year amid the rising interest rate environment. While the decline in inflation in July from the multi-decade high level provides investors some relief, the 8.5% CPI level is still uncomfortable for policymakers. Elevated inflation and a red-hot job market could push the Fed to maintain its hawkish policy stance. So, the market is expected to remain volatile.
Given this backdrop, dividend stocks have been gaining popularity among investors as they offer a steady passive income stream. Investors’ interest in dividend stocks is evident in the iShares Core High Dividend ETF’s (HDV) 6.5% returns over the past year.
