The trading floor held it’s breath today as the minutes winded down and the votes were tallied on the $700 billion dollar bailout that failed to pass in the House today, marking the largest drop in the stock market since the terrorist attacks of 9/11. I’ve never personally witnessed a larger drop in my brokerage account, and investors everywhere are feeling the pain.
With this in mind, it’s time to do some damage control. Take a list of your portfolio and start doing some research into whether your dividend stream is safe. A steep recession often leads to cuts in dividend rates for a number of firms, and certainly the financial sector in particular. Remember that consumer staple stocks will be more likely to weather out this recession or even a depression as consumers will continue to buy these products like peanut butter and soap long after the markets continue to writhe in pain and jobs are lost.
You may have no control over what steps the government will take for the bailout, but you can keep an eye on your own holdings and assure that your dividends are safe, and will still continue to grow for years to come in the face of a bear market and beyond.
My name's Frank and I'm a life long seeker of passive income and dividends. I work in Financial Services and invite you to join me in my search for the holy grail of finance: passive income. My methods tend to be unorthodox but effective. Whether it's through investing or other means, I believe in creating many sources of income to give me the flexibility to live the life I want, when I want it.
