Because growing concerns over the resurgence of COVID-19 cases and high inflation could keep the overall stock market under pressure in the near term, we think it could be wise to bet on high-quality dividend stocks for a steady stream of income. For instance, fundamentally sound companies Broadcom (NASDAQ:AVGO), Linde (NYSE:LIN), and Starbucks (SBUX) have increased their dividends over the past few years. So, it could be wise to bet on these stocks now. So, let’s take a closer look at these names.The major stock market indexes have been hovering near their all-time highs lately, led primarily by solid second-quarter earnings reports and the news of a substantial decline in the unemployment rate. However, market volatility still lingers, with several parts of the world witnessing a resurgence of COVID-19 cases due to the rapid spread of the highly transmissible Delta variant.
Moreover, concerns about high inflation could fuel stock market volatility in the near term. The International Monetary Fund (IMF) has warned that inflation could be persistent. As a countermeasure, the Federal Reserve could raise interest rates as soon as early 2023, but timing regarding the central bank’s tapering activities is still uncertain.
Amid this environment, investors could turn toward dividend-paying stocks to hedge their portfolios against short-term market volatility by ensuring a steady income stream. So, we think it could be wise to scoop up the shares of Broadcom Inc. (AVGO), Linde plc (LIN), and Starbucks Corporation (NASDAQ:SBUX) on their fundamental strength and history of increasing dividends.