Investors are betting on high-quality dividend stocks in response to COVID-19-pandemic-driven market volatility, which has highlighted the importance of having steady and predictable income. Because financial market volatility persists, we think it wise to bet on Rio (RIO), Fortescue (FSUGY), and Vector (VGR) because they offer more than 5% dividend yields. Read on.Even though the U.S. economy is on a path of recovery, the COVID-19 pandemic is far from vanquished, with several countries still witnessing increasing numbers of cases each day. So, financial market volatility persists, and the Federal Reserve is also expected to keep interest rates low in the near-term.
In this environment, several investors are turning to dividend yielding stocks to ensure a steady stream of portfolio income. Investors’ interest in dividend stocks is evident in SPDR S&P Dividend ETF’s (SDY) 24.7% returns over the past six months.
While not all high-yielding dividend stocks are a good buy, we think it could be profitable to bet on Rio Tinto Group (NYSE:RIO), Fortescue Metals Group Limited (OTC:FSUGY), and Vector Group Ltd . (NYSE:VGR) based on their stable business and reliable long-term returns. Their current dividend payouts yield more than 5%.