Traders wearing masks on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters
(This story is for CNBC Pro subscribers only).
With many traders bracing for volatility ahead of a busy stretch of earnings season and the Nov. 3 election, it may be a good time for investors to look to the stability of dividends to shore up their portfolios.
After a year that saw two sharp reversals in the overall market levels, some advisors and strategists are telling clients to search for dividend stocks with upside. One way to do that could be looking at small and mid-cap stocks, which tend to be riskier bets than those in the S&P 500 but could have more room to grow.
Before Monday’s sell-off, mid-cap stocks had been on a tear in recent weeks. The S&P 400 had jumped more than 12% over the past month, nearly doubling the return of its large-cap cousin. However, the mid-cap index sank 2.1% on Monday, a worse decline than large caps, highlighting the volatility of smaller stocks.
Originally published at CNBC