Looking for Stable Income? Keep an Eye on These 3 Dividend Stocks

Looking for Stable Income? Keep an Eye on These 3 Dividend Stocks

Posted On May 31, 2023 10:05 am

Expectations of a recession later this year are high, considering the higher interest rates and an expected credit crunch due to tighter lending standards. While the market is currently volatile, investors could consider adding dividend-paying stocks Canadian Natural Resources Limited (CNQ – Get Rating), Eastman Chemical Company (EMN – Get Rating), and Whirlpool Corporation (WHR – Get Rating) to their watchlist.

Although inflation has shown signs of easing, it remains above the Fed’s target of 2%. A pause in interest rate hikes looks likely after Fed Chairman Jerome Powell indicated that the central bank might forgo raising the benchmark interest rate at its meeting next month. Powell stated, “Having come this far, we can afford to look at the data and the evolving outlook and make careful assessments.”

Despite the possibility of a pause in interest rate hikes, there exists the chance of a recession as the benchmark interest rate is at its highest level in 16 years, and the Fed looks unlikely to cut interest rates anytime soon. Moreover, regional bank failures will likely lead to a credit crunch due to tighter lending standards putting further pressure on the economy.

Amid seemingly ceaseless concerns of an impending recession, investors are challenged with where to secure their funds. When faced with macroeconomic uncertainty, investors may look to add dividend stocks to safeguard their portfolio as they can provide a stable source of income and stability against such economic headwinds.

For investors looking to tide over the uncertain macroeconomic conditions, dividend-paying stocks could be ideal. Amid this backdrop, adding the featured stocks to one’s watchlist could be…

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