Worried About a Stock Market Sell-Off? Consider These Dividend Stocks
The last five years have featured three distinct stock market sell-offs. In late 2018, it was the U.S.-China trade war and an uncertain Fed policy that sparked a rapid sell-off. In 2020 it was the COVID-19 pandemic. And in 2022 it was inflation, rising interest rates, supply chain disruptions, and geopolitical concerns.
Entering the last third of 2023, there's a great deal of uncertainty in the stock market. Many issues that contributed to last year's sell-off haven't gone away, and in fact have arguably gotten worse.
If you've been through a brutal sell-off before, you may be familiar with the calming presence a quality dividend stock can bring when the market is crashing around you. The calm can come from steady dividend payments that provide passive income without the need to sell stock. But it can also come from lower volatility, as quality dividend names with stable business models can often outperform the broader stock market during a sell-off. This one-two punch of capital preservation and passive income can help you rest easy at night, even during a bear market.
Source Fool.com
