Recent market fluctuations have shown a significant decline, with the S&P 500 dropping 14% and tech stocks seeing a 23% loss. This volatility illustrates the potential for loss in the stock market, but historically, savvy investors can find opportunities amidst downturnsâespecially in dividend stocks. Warren Buffett has been accumulating cash to invest during this period. The article encourages investors to focus on high-yield dividend stocks as they tend to provide stronger returns, particularly those yielding above the average but not the highest yields, which have historically offered consistent performance.
Since the middle of February, the S&P 500 has fallen into correction territory by losing 14% of its value. It's been even worse for tech stocks.
While Wellington Management found that high-yield dividend stocks outperformed all other classes between 1930 and 2022, they discovered that those with high yields - but not the highest - performed best.
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