The markets were down today by almost 4%. So far the S&P 500 stock index has fallen by about 9% for the month and 8% for the year. The media is abuzz about a market crash or correction! As an investor what do you do?
No one can predict the future. No one knows if this is a correction or market crash. The key here is to remain patient and calm. I normally wait for the dust to settle, at least a few days to see which direction the market is headed. There is no need to panic, who knows what will happen tomorrow?
Here is the dividend yield on a few stocks from last month compared to today:
Stock, Last Month, Today
NA, 4.6%, 5%
RY, 4.1, 4.2
AGU, 2.6, 3.6
ACO.X, 2.4, 2.6
CTC.A, 1.6, 1.7
INTC, 3.3, 3.6
CSCO, 3, 3.2
AFL, 2.5, 2.6
XOM, 3.6, 4
As you can see aside from AGU the dividend yields have not increased too much. I'm going to wait and see what happens tomorrow and in the next few days.
The stocks we follow (large quality dividend payers) aren't as volatile as the smaller or midsize companies.
Yes, the market had a big drop today but our stocks did not drop as much.
Remain calm and patiently wait for great opportunities in the the form of wonderful companies (stocks) going on sale (undervalued)....let the 12 Rules of Simply Investing guide you.
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