The Benefits of Owning Dividend Paying Stocks

During downtrends, the dividend generally remains constant. That means that in a downturn, those dividend paying stocks are not going to go down as much as the general market. During a major downturn, they still have a price collapse. And we're talking in the neighborhood of well more than 30 or more percent. So my theory is it's better to move to cash in those situations rather than sit through that much of a downturn.