You need dividends if you expect to keep up with market returns. Dividends are responsible for 40% of stock market returns. Good luck investing without them!
With the understanding that dividends are important, it’s a great idea to be on the lookout for high-quality businesses that reach fire-sale prices.
Because as share prices fall, the dividend yield rises. That’s because the dividend payout stays the same, therefore making up a larger percentage of the share price.
Let’s look at two such quality businesses at fire-sale prices… and their dividend yields right now.
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