Buying in the Storm: How Bear Markets Lead to Higher Dividends and Returns

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Almost everyone knows that tariffs and trade wars have sent global markets spiraling, with the Dow down 17% and the S&P 500 down 20% from their highs, based on our recording date. While technically that implies we have entered a bear market, it also means better prices for long-term cash flow. It is human nature to get nervous when markets seem to be on the brink of panic, but dividend growth investors should see times like these as a gift. 

 

In this episode, Greg tackles the tough headlines and sinking sentiment in today’s markets. As recession fears grow and the market experiences significant volatility, Greg explains why focusing on sustainable cash flow and quality companies provides stability for long-term investors. From investor psychology to long-term GDP trends, Greg discusses how disciplined dividend investing turns market panic into wealth creation. Later, he highlights our recent purchase of Union Pacific ($UNP) as proof of concept. 

EDIT: In the episode, Greg mentions that paying $30 for $1 of earnings is about a 2.5% earnings yield. This comment was made in error; the correct number is a 3.33% earnings yield.

Topics Covered: 

• [01:00] Why focusing on cash flow provides clarity in a chaotic market
• [02:48] First quarter portfolio performance and the power of staying invested
• [05:00] Reframing a bear market: buying cash flow at a discount
• [06:55] How GDP and earnings trends support long-term optimism
• [10:17] Why market corrections test your investment mindset
• [11:50] Comparing stock ownership to rental property — and why we forget it's the same
• [16:33] Real numbers that contradict the media narrative (household debt, corporate cash, etc.)
• [24:52] New position: Why we bought Union Pacific and what makes it a dividend powerhouse
• [28:40] The case for quality, patience, and diversification during uncertainty
• [31:33] Index funds, dividend ETFs, and staying positioned for the rebound
• [34:01] The most dangerous investing phrase: "It's different this time"

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Disclaimer: This discussion is for educational purposes only and not investment advice.

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