The resurgence of COVID-19 cases, rising geopolitical tensions, and jitters over the pace of global economic growth are expected to keep the stock market highly volatile in the near term. So, in this environment, we think it could be wise to bet on quality stocks GlaxoSmithKline (NYSE:GSK), Vector Group (NYSE:VGR), Star Group (SGU), and Ennis (NYSE:EBF), each of which offers high dividend yields. Read on.While the Federal Reserve expects the increase in inflation to be transitory and is likely to continue maintaining low-interest rates, the resurgence of COVID-19 cases with the rapid spread of the Delta variant, rising geopolitical tensions related to the Afghan government’s collapse, and concerns over the global economic recovery will likely keep the stock market highly volatile in the near term. While the long-term impact of geopolitical tensions on the U.S. stock market is still uncertain, the major benchmark indexes sagged this morning.
Therefore, we think it could be wise to secure some income by betting on fundamentally sound dividend-paying stocks, particularly with Treasury Yields declining. Investors’ interest in high-dividend-yield stocks is evident in the SPDR Portfolio S&P 500 High Dividend ETF’s (SPYD) 23.1% returns year-to-date.
Dividends paid by GlaxoSmithKline plc (GSK), Vector Group Ltd . (VGR), Star Group, L.P. (SGU), and Ennis, Inc. (EBF) translate to high yields at their current price levels. Given their impressive payout histories and fundamentals, it could be wise to bet on these stocks now.