As Volatility Persists Into The Second Quarter, Investors Prefer Dividend Stocks

According to a new survey conducted by Trade Algo, investors now prefer stocks that pay big dividends because they offer a relatively stable source of income, which is especially important to families who cannot afford to buy a house.

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It is with great pleasure that we present to you the surveys we conducted over the past week amongst about 400 chief investment officers, equity strategists and portfolio managers of corporate and individual funds, as well as contributors to Trade Algo, who manage money. 

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Three in ten people asked which area they should focus on to begin the second quarter. In the first quarter of the year, 34% of people said they would focus on dividend stocks. Dividends are a part of a company's earnings that are distributed to its shareholders. During times of uncertain times, stocks with high dividend payouts can provide a reliable stream of income.

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Vanguard Dividend Appreciation ETF, Vanguard High Dividend Yield ETF and Schwab U.S. Dividend Equity ETF are just a few of the exchange-traded funds that invest in high dividend stocks. Market figures indicate that these are some of the most popular funds.

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Among the stocks that VYM holds are AT&T, which has a dividend yield of 5.8%, HP, and Exxon Mobil, all of which pay dividends equivalent to 3%.

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It is estimated that approximately 70% of respondents think that the S&P 500 index is leading the overall market.

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There is a possibility that the market could see declines ahead. The biggest risk to the market this year, according to 35% of investors, is a misstep by the Federal Reserve, while an additional 32% believe that stubborn inflation is the biggest risk.

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With the S&P 500 up more than 5% for the quarter, it appears that the market is poised to post another winning quarter. Despite a global economic crisis and continuous tightening from the Federal Reserve, the stock market has shown a lot of resilience this year.