
Stagflation is back in the headlines in 2025, as investors worry that still-high inflation could soon be joined by high unemployment and a stagnant economy. Because of this, more people are looking for investments that can handle tough times while still paying out steady income. Dividend stocks, especially those that analysts really like, may be safe bets for stable returns.
Recent performance show why this matters right now. The S&P 500 Index ($SPX) is down nearly 4% in the year to date, as is the Nasdaq-100 Index ($IUXX). However, some top dividend stocks like Coca-Cola (KO) have seen the opposite, with KO up over 13% year-to-date.