There are many ways to make money on Wall Street. One of the best proven strategies is buying and holding dividend stocks for long-term wealth creation.
Countless studies prove the superiority of income-generating stocks. The asset managers at Hartford Funds looked at the performance of the benchmark S&P 500 going back to 1930. They found that although there were periods when the index produced negative returns, dividend stocks always produced positive returns. That was backed by JPMorgan‘s asset management division which found stocks that initiated and then raised their payouts over the 40 years between 1972 and 2012 returned an average of 9.5% annually, compared to just 1.6% non-dividend-paying stocks.
Mind you these results were across periods when there were recessions, depressions, world wars, global pandemics, and geopolitical events that crippled nations. Dividend stocks always shined.
If you think the U.S.’s third-quarter economic expansion was the high-water mark, what follows are seven dividend stocks for a market crash that will protect your portfolio.
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It doesn’t look like AbbVie (NYSE:ABBV) would be a good choice for surviving a market crash. The pharmaceutical is down 14% year-to-date versus a 15% gain in the S&P 500. That’s because its lead drug Humira lost patent protection at the start of the year and generics and biosimilars have eaten away at sales. U.S. revenue for the arthritis treatment of $16 billion over the first nine months of 2023 is down 11% from last year.
Yet AbbVie has about a dozen other drugs that generate over $1 billion annually along with a strong pipeline of therapies that should come to market eventually. It’s also looking to extend existing treatments into new indications. All of these drugs keep the pharma quite profitable…
“The adventure of life is to learn. The purpose of life is to grow. The nature of life is to change. The challenge of life is to overcome. The essence of life is to care. The opportunity of like is to serve. The secret of life is to dare. The spice of life is to befriend. The beauty of life is to give.” —William Arthur Ward