Stock market volatility may have some investors looking for dividend stocks to provide some cushioning. On Wednesday , the Dow Jones Industrial Average sank nearly 500 points, or 1.2%, after inflation data came in hotter than expected and likely pushed back Federal Reserve rate cuts. Both the S & P 500 and Nasdaq Composite slipped 1%. For Kevin Simpson, founder and chief investment officer of Capital Wealth Planning, dividend investing has long been part of his firm's strategy.
JPMorgan Chase has a five-year compound annual dividend growth rate of 10.3%, Simpson said. It also has a forward price-earnings ratio of 12, he said. The financial giant, which has a dividend yield of 2.4%, is set to report quarterly earnings on Friday and Simpson expects the numbers to be good. The bank generated nearly $50 billion of profit in 2023, up about 38% from the previous year. Shares are up more than 14% year to date.