Dividends can help investors weather market downturns from "summary" of The Little Book of Big Dividends by Charles B. Carlson
Dividends are like a sturdy lifeboat in a stormy sea of market volatility. When the stock market experiences a downturn, dividends can provide investors with a reliable source of income that is not dependent on the whims of stock prices. In times of market turbulence, dividend-paying stocks have historically held up better than non-dividend-paying stocks. This is because companies that pay dividends tend to be more mature, stable, and financially sound. They are less likely to experience wild fluctuations in stock price, making them a safer bet for investors looking to weather market downturns. Dividends also have a positive psycholog...
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