Stocks traded with mixed results to complete the second session of the...

Stocks traded with mixed results to complete the second session of the year, diverging by asset type. Comparing the chart of the $Dow Jones Industrial Average(.DJI.US)$ with that of the Nasdaq 100 Index illustrates those investors are favoring one over the other right now. The explanation has something to do with investor preferences for stocks that pay dividends.  $SPDR Dow Jones Industrial Average Trust(DIA.US)$ $Invesco QQQ Trust(QQQ.US)$

Since 27 of the 30 Dow components pay a dividend, it is easy to see this preference when comparing that index to the growth-oriented Nasdaq 100. By contrast, less than half of Nasdaq stocks pay a dividend. This price dynamic implies that investors are looking to dividend-paying stocks for their best bets in 2022. It makes sense those blue-chip dividend payers are more likely to be resilient in the face of inflationary pressure.