Current market volatility and analysts’ expectations of a rolling market correction have shifted investor attention toward dividend stocks with stable payouts. So, we think leading industry players AT&T (T) and Altria (MO) could be valuable additions now to one’s portfolio. However, fundamentally weak dividend stocks, Iron Mountain (IRM) and B&G (BGS), with poor cash flows, are now best avoided. Read on for details.The spike in COVID-19 cases and rising inflationary pressures are threatening the current bull market. These concerns have led analysts to anticipate a stock market correction soon, with an expected retreat of more than 10% from recent highs. Consequently, dividend stocks could be ideal bets now.
Over the past couple of months, declining Treasury yields amid the continuing near-zero interest rate environment have made high-yielding dividend stocks AT&T Inc. (T) and Altria Group , Inc. (NYSE:MO) solid bets. These stocks have impressive payout histories.
Conversely, we think it could be risky to bet on dividend-paying stocks Iron Mountain Incorporated (NYSE:IRM) and B&G Foods, Inc. (BGS) because of their weak balance sheets and hefty losses.