Traditionally, stocks tend to scale up after midterm elections. In reality, the stock market tends to perform better amid gridlock in Washington, or if there is some sort of split government. Thus, investors were expecting Republicans to gain ground, which so far has failed to materialize.

The outcome of the battle over the control of the U.S. Senate and House remains unclear, but chances of a so-called “red wave” appears to have been more or less ruined. No doubt, the stock market ended in the negative territory on Nov 9, a day after Americans voted to decide who controls Congress.

Major stock indexes, incidentally, have jumped up this year as the Federal Reserve tightened its monetary policy to curb stubbornly high inflation. Needless to say, a rate hike impacts consumer spending levels and consequently economic growth.

This month, nonetheless, the Fed has approved its fourth successive three-quarter-point rate hike, thereby taking the interest rate to between 3.75% and 4%. In fact, interest rates are expected to increase further in December and beyond, thanks to recent better-than-anticipated payroll numbers.

Meanwhile, Fed Chair Jerome Powell categorically mentioned that it’s “premature” to think about pausing interest rate hikes since core inflationary pressure continues to rise at a painful pace. Per the U.S. Labor Department, the core consumer price index for the month of September soared 6.6% year over year, its biggest 12-month jump since 1982.

Additionally, investors are now anxious that a likely bankruptcy of the FTX cryptocurrency exchange may adversely impact the already battered stock market. However, investors shouldn’t freak out!

Instead, they should place their bets on dividend-paying stocks like American Assets Trust (AAT Quick QuoteAAT - Free Report) , American Electric Power (AEP Quick QuoteAEP - Free Report) , BCB Bancorp NJ (BCBP Quick QuoteBCBP - Free Report) , Conagra Brands (CAG Quick QuoteCAG - Free Report) and NextEra Energy Partners (NEP Quick QuoteNEP - Free Report) for a steady stream of income this year and beyond.

Thanks to a fundamentally sound business model, dividend-paying stocks remain protected from market vagaries. Presently, these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and offer high yields. You can see the complete list of today’s Zacks Rank #1 stocks here.

American Assets Trust is a real estate investment trust, or REIT, that owns, operates, acquires and develops retail and office properties primarily in Southern California, Northern California and Hawaii. American Assets Trust has a dividend yield of 4.62%. In the past 5-year period, AAT has increased its dividend seven times, and its payout has advanced 2.83%. Check American Assets Trust’s dividend history here.

American Assets Trust, Inc. Dividend Yield (TTM)

 

American Assets Trust, Inc. dividend-yield-ttm | American Assets Trust, Inc. Quote

AAT’s expected earnings growth rate for the current year is 13%. Its next 5-year projected earnings growth rate is 8%. Currently, AAT has a Zacks Rank #2.

American Electric Power is a public utility holding company, which, through directly and indirectly owned subsidiaries, generates, transmits and distributes electricity, natural gas and other commodities. American Electric Power has a dividend yield of 3.5%. In the past 5-year period, AEP has increased its dividend five times, and its payout has advanced 5.52%. Check American Electric Power’s dividend history here.

American Electric Power Company, Inc. Dividend Yield (TTM)

 

American Electric Power Company, Inc. dividend-yield-ttm | American Electric Power Company, Inc. Quote

AEP’s expected earnings growth rate for the current year is 6.1%. Its next 5-year projected earnings growth rate is 6.2%. Currently, AEP has a Zacks Rank #2.

BCB Bancorp NJ operates as the holding company for BCB Community Bank, a state-chartered commercial bank that provides banking products and services to businesses and individuals in the United States. BCB Bancorp has a dividend yield of 3.25%. In the past 5-year period, BCBP has increased its dividend one time, and its payout has advanced 3.06%. Check BCB Bancorp’s dividend history here.

BCB Bancorp, Inc. NJ Dividend Yield (TTM)

 

BCB Bancorp, Inc. NJ dividend-yield-ttm | BCB Bancorp, Inc. NJ Quote

BCBP’s expected earnings growth rate for the current and next years are 43.8% and 3.6%, respectively. Currently, BCBP has a Zacks Rank #1.

Conagra Brands is one of the leading branded food companies of North America. Conagra Brands has a dividend yield of 3.7%. In the past 5-year period, CAG has increased its dividend three times, and its payout has advanced 11.23%. Check Conagra Brands’ dividend history here.

Conagra Brands Dividend Yield (TTM)

 

Conagra Brands dividend-yield-ttm | Conagra Brands Quote

CAG’s expected earnings growth rate for the current year is nearly 3%. Its next 5-year projected earnings growth rate is 6%. Currently, CAG has a Zacks Rank #2.

NextEra Energy Partners is a growth-oriented limited partnership formed by NextEra Energy, Inc. in 2014. The partnership is formed to acquire, manage and own contracted clean energy projects with stable long-term cash flows. NextEra Energy Partners has a dividend yield of 4.13%. In the past 5-year period, NEP has increased its dividend 20 times, and its payout has advanced almost 15%. Check NextEra Energy Partners’ dividend history here.

NextEra Energy Partners, LP Dividend Yield (TTM)

 

NextEra Energy Partners, LP dividend-yield-ttm | NextEra Energy Partners, LP Quote

NEP’s expected earnings growth rate for the current year is 190.4%. Its next 5-year projected earnings growth rate is 10%. Currently, NEP has a Zacks Rank #2.