President Trump’s “Liberation Day” announcement of imposing significant tariffs on the rest of the world triggered a steep and scary sell-off in the stock market. The S&P 500 and Nasdaq 100 indices reached bear market (more than 20% down) from their mid-February record highs.
The fast and furious market crash had investors—both individuals and professionals—selling stocks and heading for the sidelines. Stock prices went down because there were more buyers than sellers.
The financial news networks were full of professional money managers stating they were staying in cash and out of stocks until there was more certainty about the economy and government policies. The fear and belief were that share prices would continue to fall until there was the time for companies to understand the effects on their businesses.
Those investors, individuals, and professionals were wrong. The market “crash” lasted less than a week.
You can see that the markets recovered those early April losses in just a few weeks. A tremendous buying opportunity had come and gone.
The rapid drop and recovery show the strength of using an income-focused strategy, which I recommend to my Dividend Hunter subscribers. We focus on building an income stream from higher-yield investments. When share prices drop, yields go up. Market corrections like the one shown above are opportunities to buy dividend-paying shares with any cash you can get your hands on.
A student of the markets knows that prices always recover from a downturn. Each recovery goes on to set new highs—every time. If you have an income-focused strategy, buying shares in a downturn becomes easier, and even exciting, because you know your wealth and income will be much greater after the recovery.
Buy and Hold This Dividend Stock Forever...
and Leave It for Your Grandchildren
Income stock analyst Tim Plaehn reveals his safest, most reliable, and most consistent dividend stock - and it pays over a 7.5% yield with dividends paid EVERY month (plus 2 bonus payments in June and December - the next bonus is coming up quickly).
In addition to paying 14 dividend checks each year, this company has also increased its monthly dividend twice every year for the past 4 years. And before that, it raised dividends twice per year since 2010 except 2020 during Covid when it held them steady, unlike so many others that cut their dividends and left income investors holding the bag. This is about as a reliable dividend grower as you're ever going to get.
Click here to get the name of the stock.
This stock is one of those rare finds that you can hold forever and pass down to your grandchildren. It should be a core position in every investor's portfolio.
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