In Times of Panic, Dividend Stocks Shine

In times of panic such as the last few days, many investors start to panic, which makes it very difficult to see a clear picture. Are all stocks going to $0? Is everything about to blow up? After days when markets lost over 6%, such questions become more common. In times like these, some assets become mispriced, giving investors with a lot of cash reserves great opportunities.

The trickier part of course is trying to time the market and I would not even try. The market might decline another 5-10% and maybe even more but trying to buy at the bottom will require a lot of luck and most likely lead you to miss the opportunity. I personally prefer holding high quality dividend stocks that pay a higher dividend yield and hold a lot of cash than buying a 10-year government bond.

Source: Seeking Alpha

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