Wall Street Selloff Lifts Dividend Yields
The S&P 500 fell more than 3% Thursday as AI infrastructure stocks sold off, erasing Wednesday’s rally. For dividend investors with cash to put to work, a selloff this sharp can make a real difference to the income their next purchase buys.
Here’s what that looks like. A stock paying $2 a year yields 8% at $25. At $22, it yields 9.1%. If the payout holds, the same $1,000 buys about $91 in annual income instead of $80, before taxes and fees. That’s roughly 14% more income from the same investment.
That’s why we welcome a day like this when we have dividends to reinvest. In the Fly High universe, we’d start with stocks that fell alongside the broader market and whose latest earnings still support their payouts. If the selloff gives us a better price on a dividend we already have good reason to trust, we can add more income with the cash we already have.
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This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.