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I think that this bear market that we are currently in has opened up an amazing opportunity right now in dividend ETFs. Dividend ETFs have taken a hit so far this year along with essentially everything else, but the downtrend has been minimal compared to most. This is because dividend ETFs are usually pretty stable. People don't buy into these ETFs to see a huge increase in share price; people buy these ETFs because of the passive income opportunity.
My goal with dividend ETFs is to use them to get cashflow for Finance by CWT that can be used to give us more money to invest into startups with. Investing into cashflow producing businesses will basically fund our more risky investments. With this in mind, one can see why it is so important that we invest as much as possible into dividend producing ETFs. One can also imagine how ecstatic I must be to get shares in these ETFs at a nice discount thanks to this bear market.
Right now, SCHD, a dividend ETF from Schwab, is providing a 3.10% dividend yield which is absolutely incredible. Right now, SCHD is down 12.10% year to date but compare that to the S&P which is down 22.52% year to date and see why I claim that dividend ETFs are more stable. This does mean, however, that when things recover the S&P will grow by far more than dividend ETFs like SCHD, and I am investing a far larger amount into the S&P than dividend ETFs right now because of this reason, but I feel like the cash flow opportunities of dividend ETFs make these ETFs look like a very smart investment play to make.
If one is looking for an investment that will remain more stable than others while also producing revenue for themselves, than ETFs like SCHD will probably look pretty attractive to them. This is especially true during a market downtrend like we are in now.