When considering dividend stocks to buy on the dip, it’s important to weigh the current economic environment. With robust employment and rising energy prices, strategies to lower interest rates may be put on hold. U.S. government bonds are considered a safe investment, but corporate-backed passive income may become more attractive if monetary policy remains stable.
One option to consider is IBM (IBM), a legacy technology company that recently reported mixed earnings. While sales fell short of expectations, the company’s acquisition of cloud software maker HashiCorp is seen as a positive move. With a forward annual dividend yield of 3.61%, IBM may be worth considering as a dividend stock to buy on the dip.
ConocoPhillips (COP) is another option to explore, especially for investors interested in the energy sector. Despite the push for renewable energy solutions, the world still relies heavily on oil. With geopolitical tensions impacting global supply chains, the exploration and production cycle becomes crucial. COP, with a forward yield of 2.77%, could be a good dividend stock to consider.
Pfizer (PFE), a major pharmaceutical company known for its Covid-19 vaccine, has seen a decline in stock value as concerns over the virus fade. However, the company’s experience with messenger-RNA technology could lead to future innovations. With a forward yield of 6.4%, Pfizer may be an attractive option for investors looking for dividend stocks to buy on the dip.
Overall, it’s important to carefully evaluate the current market conditions and individual company performance before making any investment decisions.