Because the stock market is expected to remain volatile at least over the near term due to fears over the spread of the COVID-19 Delta variant and rising inflation, dividend-paying stocks might be excellent investment bets to assure at least a steady stream of income. Dividends paid by Johnson and Johnson (JNJ), McDonald’s (MCD), and Medtronic (NYSE:MDT) yield more than 2%. Furthermore, given their low beta, we think these stocks could be safer investment bets right now. Read on.The stock market is experiencing substantial volatility due to concerns over high inflation and fears regarding the global spread of the COVID-19 Delta variant. According to Dr. Rochelle Walensky, director of the Centers for Disease Control and Prevention, the seven-day average of COVID-19 cases had climbed approximately 70% in the space of a week. The highly contagious Delta variant is primarily responsible for this resurgence in COVID-19 cases.
Concerns over a potential slowdown in global economic growth drove a broad market sell-off on July 19, representing the market’s worst day in nine months. Given this backdrop, low-volatility dividend-paying stocks could be the best bet now. Investing in dividend-paying stocks is a popular way to beat market volatility and mitigate portfolio losses.
Johnson & Johnson (JNJ), McDonald’s Corporation (MCD), and Medtronic plc (MDT) are well-established companies that have been paying steady dividends for years. The dividends paid by these companies yield more than 2%. Also, each of these stocks possesses a low beta, indicating that they are less volatile than the broader market.