Say your favorite income stock gets hit hard after a lackluster earnings report. Should you stand pat or fold?
Well, study after study shows that most investors lose out when they try to time markets. They would be better off with a buy-and-hold strategy emphasizing financially healthy, dividend-paying stocks.
The reasoning is fairly simple. Solid, well-established companies still have earnings ups and downs — indeed, those very companies with solid, well-established dividend histories help weather the earnings storm. Sure, it hurts to see knee-jerk drops in the share price after an earnings miss, but take heart — if you’ve chosen well, you’ll still get that quarterly dividend check.
Furthermore, you can expect continued increases in those checks.
Such is the case with the following four dividend-paying stocks that saw misses turn into selloffs on the news. If you own any of these four and haven’t made a move yet, hold off for a while — panic-selling is not the path to retirement planning. Think strategically and you may save yourself even more pain down the road.