5 Best Stocks To Buy For Dividend Growth

Who doesn’t want a portfolio that generates higher returns? However, markets have been on a roller coaster ride in the recent past – be it due to the flagging Chinese economy, weakness in the energy sector or a strong dollar. After meticulously analyzing the current economic scenario, the recent decision of the Federal Reserve not to go for a rate hike is a wise one.

So, the federal funds rate is left untouched at 0.25% to 0.50% for now, providing the stock market with the much-needed impetus. The Fed remains cautiously optimistic about the U.S. economy and as the situation improves worldwide, the U.S. will be ready to lead the squad. The economy is not in bad shape as some of the risk-averse investors perceive. The employment picture is good enough to clear the way and inflation is crawling toward the desired level.

The Fed now anticipates the U.S. economy to expand at a pace of 2.2% this year, marginally lower than 2.4% projected earlier, thanks to the recent turbulence. On the other hand, inflation is likely to hover around 1.2% by the end of the year, falling shy of the Fed’s target of 2%. The unemployment rate, which was 4.9% in February, is estimated to be 4.7% by the end of this year, 4.6% by 2017 and 4.5% by 2018.

While the global markets are trying hard to make their way out of the woods, domestic investors welcomed the Fed’s decision, which to an extent calms the jitters that rose, when discouraging retail sales data for February and a downward revision to January retail sales point to some degree surfaced. Definitely, the eventful financial world might baffle you and your investment precision, so better to bet your bucks on safer counters.

Where Lies the Safe Haven?

Modest economic growth, impressive employment statistics, rebounding oil prices on renewed hope for an output freeze, and favorable manufacturing data are doing a commendable job in alleviating investors’ concerns. Yet any unprecedented macroeconomic headwind can make them impatient.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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