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Investors have remained cautious about taking new long positions because November inflation data showed that consumer prices have surged to a 6-8%, 40-year high, their fastest increase since 1982. Inflationary pressures have forced the Fed to act, and it has indicated that it will halt its pandemic-driven asset purchases early next year, giving way to three interest rate hikes in 2022 to counter the high inflation threat. However, according to a FactSet report, the S&P 500 will close at or above 5,000 by fiscal 2022.
So, we think it could be wise to bet on quality dividend-yielding stocks to hedge one’s portfolio against market volatility by ensuring a steady income stream. Given their stable dividend yield, Intel Corporation (NASDAQ:INTC) and GlaxoSmithKline plc (GSK) could be solid additions to one’s portfolio. In addition, they are currently trading at a discount to their peers.
