3 Dividend Growth Stocks to Buy During This Market Correction

Year-to-date, the S&P 500 is down by 7%, while the Nasdaq and Russell 2000 are down even more with losses of 12% and 8%, respectively. Initially, stocks sold off due to the Federal Reserve signaling a number of rate hikes in 2022 to combat multi-decade-high inflation. Then, Russia invaded Ukraine, which drove the price of oil and other commodities up significantly. This both adds to inflation and increases the risk of recession. Historically, uncertain times like these are some of the best times to invest. This is when the opportunity emerges to buy high-quality stocks at a discount.

One characteristic of a high-quality stock is paying dividends — and a consistent track record of hiking those dividends. This indicates a strong business that can thrive in all types of economic conditions, and a management team focused on returning capital to shareholders. Here are three such dividend growth stocks that investors should consider now: Microsoft (NASDAQ:MSFT), — This dividend stock’s yield is low, but increasing quickly, Costco (NASDAQ:COST) — Its dividends have grown by 12% annually over the past five year and AbbVie (NYSE:ABBV) — AbbVie currently boasts a 3.8% yield.

Source: Investor Place

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