It’s Rough Out There. Stick With Dividend Stocks to Stay Afloat.

Dividend stocks are poised to notch an impressive victory this year. The


Dow Jones U.S. Select Dividend


index is ahead 5.5%, cruising past the


S&P 500


index, down 14.4% in total returns. Even more impressive, dividend stocks have left the tech-heavy


Nasdaq Composite Index


down 26.7%, in the dust.

The disparity isn’t likely to last, as these performance trends tend to even out or reverse—growth could make a comeback, pulling up tech and other sectors not known for big dividends. But some analysts expect dividend stocks to keep powering ahead, betting that investors will favor their defensive qualities amid a potential recession and other market headwinds.