The Secret Weapon for Bear Markets: Dividends
Let’s talk about one of the best-kept secrets in a falling market: dividend stocks.
When everything else feels like it’s crashing around you, dividends have a way of keeping your portfolio grounded. While growth stocks are getting pummeled left and right, dividend payers are handing you a steady paycheck just for holding on.
That consistent income stream gives you something most traders don’t have right now — breathing room.
It’s easier to stay patient and stick with your plan when you’re collecting real cash from your positions.
And if you’re reinvesting those dividends, you’re actually buying more shares while prices are low — which sets you up even better for the rebound.
But here’s the best part: dividend stocks as a group have actually outperformedin 2025.
We’ve seen the broader market get hit hard.
The S&P 500 (SPY) is down big.
But the Schwab U.S. Dividend Equity ETF (SCHD) — which we track inside our DVF portfolio — has held up much better.
While SPY has dropped more than 15% this year, SCHD is only down about 10%. That relative strength in the middle of all this chaos is exactly why we build around these kinds of names.
And get this: not only is SCHD falling less… it’s growingits dividend at the same time.
That’s a built-in raise during a bear market. Thanks to the rising income from its holdings, SCHD’s dividend payout continues to climb — even when the market doesn’t.
Bottom line?
In a rough tape like this, you don’t have to win every trade. But if you can collect steady income while the market drops — and even growthat income over time — you’re way ahead of the game.
That’s why dividend investing isn’t just about safety.
It’s about staying in the game long enough to win it.
— Nate Tucci
P.S. For more examples of stocks like this, check out my Dividends Forever portfolio— and see how dividend investing can help you stay steady, no matter how the market behaves.
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