Are Dividend Stocks Safe During Market Crashes?
Understanding Dividend Stocks in a Crash
Dividend stocks are seen as
defensive investments
during downturns.
But
not all dividend stocks
are equally safe in a market crash.
Why Some Dividend Stocks Stay Resilient?
– Companies with
consistent earnings
can maintain payouts.
– Defensive sectors like
FMCG, utilities, and healthcare
are less volatile.
Why Some Dividend Stocks
Are Risky?
–
High-yield stocks
may cut dividends during financial stress.
– Companies with
high debt & low cash flow
struggle in recessions.
How to Pick Safe Dividend Stocks?
–
Low payout ratio
ensures dividends remain sustainable.
–
Strong balance sheet
= lower debt, higher cash reserves.
Investment Insights
–
Look for Companies Expanding Fiber Networks:
Telecoms with a strong broadband presence will see sustained growth.
Monitor Subscriber Growth & ARPU:
Higher broadband adoption leads to steady revenue