I have a portfolio of around 40 stocks, and I notice that certain stocks are more affected by market downturns than others. However, I am not overly concerned about the core operations of my major investments. While their stock prices may fluctuate, I trust that these companies will consistently generate profits, distribute dividends, and effectively implement their plans for growth.
Here are two of my biggest dividend stock investments that I remain unconcerned about even when the stock market experiences sell-offs.
Achieving growth and generating income under any circumstances
Realty Income ( O -0.25% ) One of my biggest and oldest stock investments is in this company, and for a good reason. Not only has the company consistently outperformed the market in terms of returns, but it has also done so with lower levels of volatility. S&P 500 It has consistently grown its revenue and dividends over time, unaffected by fluctuations in the stock market and economy.
If you are not acquainted with the organization, Realty Income is a Real estate investment trust can be rephrased as a real estate investment company that owns, operates, or finances income-producing real estate. The company possesses approximately 15,500 standalone commercial properties located in the United States and Europe, with the majority being leased to retail or service establishments. There are two main factors contributing to the company’s consistent growth over time:
- The majority of Realty Income’s tenants operate in industries that are resilient to economic downturns or difficult to be displaced by online retail, or both.
- Tenants of Realty Income commit to signing lease agreements for the long term, with yearly rent hikes included. They are accountable for taxes, insurance, and the majority of maintenance expenses.
The evidence lies in the results. Realty Income has achieved a 13.5% average total return annually in the 30 years since it became listed on the NYSE. Moreover, it has consistently raised its dividend for 107 quarters in different economic conditions. Offering a 5.2% yield and a stock price that remains over 25% lower than its peak, Realty Income may be an attractive option for investors with a long-term perspective.
A crucial company prioritizing future sustainability.
The stocks that concern me the least are the ones related to selling products that are in demand by consumers. need , and Markel ( MKL 1.04% ) Markel is certainly a top choice. Essentially, Markel operates as an insurance firm that offers specialized insurance and reinsurance services. Specialty insurance has a wide range of uses, such as in my own case when I required umbrella insurance for multiple rental properties, Markel was the insurer that issued the policy.
Markel stands out from other insurance companies by utilizing its surplus capital in two distinct ways. Initially, it invests in the stock market, holding a substantial portfolio worth billions of dollars. During market downturns, the company can take advantage of lower prices to make investments. Additionally, Markel also allocates funds to emerging businesses through its Markel Ventures division, potentially leading to significant investment successes for the company.
Markel’s current price is around 17 times the expected earnings, making it a bit on the pricier side. However, considering the distinctive nature of this insurance company, it is still considered a good deal. In the event of a market decline causing a drop in the stock price, I would be eager to purchase more shares at a discounted rate.
Your strategy for navigating a decline in the market.
During a stock market decline, it is crucial to refrain from making impulsive decisions and hastily buying or selling stocks. I advise individuals to exercise caution and avoid reacting impulsively when the market experiences significant drops or gains, stating that it is an opportune time to exercise patience and avoid knee-jerk reactions. nothing Attempting to predict the market’s timing is an unsuccessful endeavor, and making rapid responses to market trends typically does not yield positive results.
After the chaos settles and prices remain low, it presents a good opportunity to buy stocks of top-quality companies at a reduced price. The stocks mentioned are only a few examples that I would consider adding to my portfolio if their prices were to suddenly drop by 10% or more without any decline in the companies’ performance.
