In 2021, the US stock market hit new all-time highs thanks to government stimulus, the Fed's loose monetary policy, robust economic growth, and a fast pace of vaccinations. But at the same time, exchanges have been highly volatile – they have experienced several serious crashes due to fears about inflation, CORONAVIRUS outbreaks, and mixed economic statistics.
Ongoing macroeconomic uncertainty is fueling concerns about the continuation of a major equity market rally into 2022. The threat of inflation, potential new strains of covid-19 could stop its growth.
One option to stabilize your portfolio and hedge against volatility is to choose companies with stable income streams and strong dividend yields, especially during a period of low interest rates that discourage high bond yields.
At the same time, it is important to choose stocks not just with the maximum yield right now, it is worth considering the ability to pay in any conditions, as well as the presence or absence of growth prospects for them in the future.
You can find profitable papers not only on the Russian market, which is traditionally distinguished by large dividends. Citi equity strategist Scott Hronert expects S&P 500 companies to increase their dividend payouts by 10% to 15% in 2022, compared to the estimated payout in 2021 (about $500 billion).