Robust inflation and with it the expectation of aggressive central bank interest rate increases have soured investor sentiment. Furthermore, because of the war between Ukraine and Russia, which has already caused more serious logistical damage than was expected, the stock market is expected to remain under pressure in the near term. Danielle DiMartino Booth, CEO of Quill Intelligence, said, "The expected rate hike on Wednesday comes at a tricky time, as we are currently facing a slowing economy teetering on the brink of a recession and rampant energy and food inflation.” However, hopes of an economic rebound still exist as worldwide COVID-19 restrictions continue to ease.
Amid this scenario, we think investors should invest in quality stocks with good track records of past dividend payouts to ensure a steady income stream. Investors’ interest in this space is evidenced by the Global X S&P 500 Quality Dividend ETF’s (QDIV) 2.2% returns over the past three months compared to the SPDR S&P 500 Trust ETF’s (SPY) 10% decline.
