Dividend-paying stocks are a traditional defensive play, while healthcare faces fewer trade and economic headwinds than most sectors.

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The recent inflation read came in below market expectations at 2.8%. This was seen as a positive sign, and most stocks opened higher. However, the recovery in these stocks is still on shaky ground. Dividend stocks with very high yields can be a much better bet if inflation unexpectedly trends significantly lower in the coming

Some investors are sheltering from market swings in shares of companies with high payouts.

Yesterday, the Bank of Canada slashed its benchmark interest rates by 0.25% to 2.75%, marking seven interest rate cuts in a row. With interest rates continuing to fall, investing in monthly-paying dividend stocks that offer higher yields is an ideal strategy to earn a stable passive income. Against his backdrop, here are my three top picks.

Dividend stocks are gaining popularity again due to the recent wave of bearishness in the stock market. Both retail and institutional investors chased AI and growth stocks in the past two years, and dividend stocks were rarely on their bucket list as the returns paled compared to the hottest names on the market.