Because the stock market is expected to remain volatile on concerns over the continued spread of COVID-19, supply chain disruptions, and rising inflation, we think it could be wise to invest in quality mega-cap stocks Pfizer (PFE), Coca-Cola (KO), Merck & Co. (MRK) and Novartis (NVS). These companies are expected to generate steady returns over the long run and currently offer dividend yields of 3% or more. Let’s discuss.Though the stock market got a recent boost from solid third-quarter earnings reports and positive economic data, concerns surrounding the continuing spread of COVID-19, high inflation, and supply chain crises have been raising questions about the sustainability of the uptrend.
Furthermore, the Fed has signaled that it will likely begin tapering its $120 billion in monthly purchases of Treasury bonds and mortgage-backed securities next month. Amid this environment, investors could turn toward dividend-paying mega-cap stocks to hedge their portfolios against short-term market volatility by ensuring a steady income stream.
So, we think it could be wise to invest in mega-cap stocks Pfizer Inc. (NYSE:PFE), The Coca-Cola Company (NYSE:KO), Merck & Co., Inc. (MRK), and Novartis AG (NVS) because of their market dominance and solid long-term growth prospects. Their current dividends yield is 3% or more.