The long history of the stock market tells us one of the best things you can do with your money is buy dividend stocks. Time and again studies show dividend stocks outperform nonpaying ones by healthy margins, and even when the market has generated negative returns across certain decades, income-generating stocks still produced gains. It's one of the reasons why I think the defense industry is an excellent place to look for investments for a lifetime of passive income.
Consumer discretionary spending is weak, and Knowles' exposure to consumer products (Apple is its largest customer, representing 16% of its sales in 2021) means it's inevitably a victim of the slowdown. Sales in the Audio segment (audio products, microphones, speakers for mobile, computing, and health markets) declined by a whopping 14.2% in the second quarter to $128.5 million. Management also announced a restructuring (to be complete by the fourth quarter) in the audio segment.
The industrial giant's earnings continue to be overshadowed by litigation issues and guidance cuts.