Last week saw high volatility caused by COVID-19 Omicron Variant fears about its potential negative effects on the economy. We believe it is wise to bet on high-quality dividend-paying stocks like Intel (INTC), GlaxoSmithKline(NYSE:). This will help you avoid market volatility. These stocks are also undervalued given their current price levels. Let’s discuss.Growing concerns about the potential economic impact of the COVID-19 omicron variant and related restrictions contributed to the major stock market indexes closing in the red on Friday, capping off a week of extreme market volatility. The slipped 532.20 points intraday to close Friday’s trading session at 35,365.44, while the S&P 500 and Index fell 48.03 points and 10.75 points, respectively, to close at 4,620.64 and 15,169.68.

Because November inflation data revealed that consumer prices rose to an unprecedented 6-8%, 40 year high. This is the fastest rise since 1982, investors have been cautious about taking on new long positions. The Fed has acted to combat inflationary pressures. It indicated it would stop its asset-buying spree in the first quarter of next year and will allow for three rate increases in 2022. However, according to a FactSet report, the S&P 500 will close at or above 5,000 by fiscal 2022.

So, we think it could be wise to bet on quality dividend-yielding stocks to hedge one’s portfolio against market volatility by ensuring a steady income stream. Given their stable dividend yield, Intel Corporation (NASDAQ:) and GlaxoSmithKline plc (GSK) could be solid additions to one’s portfolio. Additionally, their current trading prices are lower than those of other peers.

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