September saw a big jump in volatility concerns over rising inflation and the Fed’s potential tightening. It could be wise to bet on large-cap dividend-paying stocks for steady returns in such an environment. Established large-cap dividend stocks Accenture (NYSE:ACN) (CAN) and McDonald’s (MCD) are worth considering now, given their stable financials and cash flows. Let’s discuss.The stock market is experiencing substantial volatility due to concerns over rising inflation, the ongoing debt crisis at China's real estate giant Evergrande, and the Fed's signal of monetary stimulus withdrawal. The CBOE volatility index (VIX) has increased 34% over the past month and 22% over the past five trading days.
Because the stock market is expected to remain volatile for the foreseeable future, it may be prudent to invest in large-cap dividend-paying stocks to ensure a steady stream of income. Large-cap stocks typically possess sufficient financial resources to absorb market shocks and deliver stable returns.
Therefore, we believe quality large-cap dividend-paying stocks Accenture Plc (ACN) and McDonald’s Corporation (MCD) could be solid bets now to dodge the short-term market fluctuations.