As investors remain anxious about the uncertainties surrounding inflation and the Fed’s comments, we believe dividend-paying stocks with improving fundamentals are your best bets. Therefore, high dividend-yielding stocks Ternium S.A (TX), OneMain Holdings (NYSE:OMF), Westlake Chemical (NYSE:WLK) (WLKP), and Ennis (NYSE:EBF) are the best buys in this environment.The U.S. stock market fell again on Tuesday as Fed Chairman Jerome Powell’s remarks about inflation spooked investors and pushed bond rates higher. The 10-year Treasury yield rose to as high as 1.56% on Tuesday. The S&P 500 suffered its worst session since May, while the Nasdaq Composite had its worst day since March, as the tech sector struggled to retain investors’ attention due to their susceptibility to increased interest rates.
Because the stock market is expected to remain highly volatile, dividend-paying stocks should outperform due to being higher-quality businesses and providing a guaranteed income.
So, it could be wise to bet on lesser-known, high-dividend-yielding stocks like Ternium S.A (TX), OneMain Holdings Inc. (OMF), Westlake Chemical Partners LP (WLKP), and Ennis Inc . (EBF) that possess fundamental strength.