2 Dirt Cheap Dividend Stocks to Buy as a Hedge Against Market Volatility
U.S. stocks are facing some daunting headwinds right now. Every U.S. stock index has seen a major spike in volatility since the start of the year, thanks to the unfavorable mix of geopolitical tensions, sky-high inflation, rising bond yields, and tighter monetary policies by the Federal Reserve.
What's the best way to counteract this surge in market volatility? While it might be tempting to stick to the sidelines during this turbulent period, history has shown that high-quality dividend stocks are a great way to mitigate wild price fluctuations in the market.
The passive income provided by dividend stocks can drastically improve a portfolio's overall performance amid high levels of volatility. Moreover, dividend reinvestment plans can further smooth out the rough patches by taking advantage of potential discounts on stock purchases via dollar-cost averaging.
Source Fool.com
