Ride out a possible storm with passive income
With the potential for rough waters to materialize, investors may want to think ahead with the most reliable dividend stocks to buy. Sure, on paper, the headline print seems to be moving in the right direction. Primarily, the official June jobs report came in at 209,000 new employment positions added, lower than the anticipated 240,000. In other words, the economy is gradually slowing, which helps the disinflation cause.
However, not everything has gone according to what the Federal Reserve desires. Notably, the pace of wage growth remained steady, whereas economists had hoped for a decline. Also, the unemployment rate dipped to 3.6% from 3.7% in May. Stated differently, disinflation is not occurring fast enough. Therefore, the Fed may raise the benchmark interest rate again, which may bode well for July dividend stocks.
Here’s the thesis: the Fed may overdo it with its rate hikes, which may spark a sharp downturn rather than gentle disinflation. Plus, higher borrowing costs won’t benefit risk-on assets. Instead, they’ll favor consistent dividend stocks, if anything. Ultimately, then, you may want to consider the below passive income providers for protection.
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