Even as the big banks post impressive figures, dividend stocks appear to be gaining traction in the stock market today. Notably, this would likely be due to the latest update from the Federal Reserve on its tapering plans. Earlier this week, a summary of the central bank’s September meeting was released. According to the notes, the Fed is looking to roll back its generous monetary support by mid-November at the earliest. Naturally, this is an understandable response given the current uptrend in the U.S. economy. Participants at the meeting note that the current economic recovery remains “broadly on track”.
Now, how would all this relate to dividend stocks might you ask? Well, for one thing, the Fed will gradually reduce its bond-buying initiatives throughout the taper. In turn, this could see investors looking for more defensive stocks in the stock market. With the dividend payout from dividend stocks, they would, in theory, be getting access to more consistent returns. With all that said, could one of these dividend stocks be prime picks right now?: Nike Inc. (NYSE: NKE), The Coca-Cola Company (NYSE: KO), The 3M Company (NYSE: MMM), Nucor Corporation (NYSE: NUE) and Walgreens Boots Alliance Inc. (NASDAQ: WBA).
Source: NASDAQ
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