Making Cents Sense

Dividend Kings, companies with 50+ years of consecutive dividend increases, have long been considered a safe haven for investors seeking stability and income. These companies, including stalwarts like Coca-Cola, Procter & Gamble, and Johnson & Johnson, have weathered economic downturns and market volatility. However, with growing concerns about an impending market crash, many investors are questioning whether Dividend Kings can continue to thrive. In this blog, we will take a historical perspective to analyze how Dividend Kings have performed during past market crashes and evaluate their resilience in the face of economic turmoil. By examining historical data and considering current market conditions, we can gain valuable insights into whether these dividend-paying giants can once again stand strong. What Makes Dividend Kings Special? Dividend Kings are a rare breed. To achieve the title, a company must consistently increase its dividend payout for at least 50 consecutive years...

The economic landscape of 2025 is showing signs that remind many seasoned investors of the stagflation era of the 1970s. Stagflation, a toxic mix of stagnant economic growth, high inflation, and elevated unemployment, can create a challenging environment for most asset classes. However, dividend stocks—especially those with a history of stability and growth—can offer a haven for investors looking to preserve wealth and generate income. In this blog post, we'll explore the parallels between the 1970s and today, analyze which sectors thrived during the last stagflationary period, and identify the dividend stocks that might outperform if 2025 does indeed mirror the economic turmoil of the 1970s. Understanding Stagflation: Then and Now The 1970s Stagflation Explained The 1970s were marked by a unique economic predicament. The decade began with robust growth, but the oil embargo of 1973, coupled with rising commodity prices and loose monetary policies, led to a surge in inflation. Meanw...

High inflation is a phenomenon that affects nearly every aspect of the economy, from consumer purchasing power to corporate profitability. For investors, inflation introduces a unique set of challenges, particularly when it comes to maintaining real returns. Among the myriad investment strategies, dividend growth investing stands out for its focus on companies that consistently increase their dividends over time. But how do these stocks fare during periods of high inflation? This article delves into historical high inflation periods, examining how dividend growth stocks have performed, what factors influence their resilience, and strategies investors can use to navigate inflationary pressures. Understanding Dividend Growth Stocks Dividend growth stocks are shares of companies that not only pay dividends but also have a track record of increasing those dividends regularly. These companies are often mature, financially stable, and generate robust cash flows. The ability to grow dividends...

Investing during a recession can be a daunting task. Market downturns often lead to increased volatility, declining stock prices, and widespread economic uncertainty. However, for dividend investors, these challenging periods can also present unique opportunities to build wealth and secure income streams. By focusing on recession-proof dividends, investors can navigate turbulent markets with greater confidence and stability. In this blog, we will explore the concept of recession-proof dividends, analyze historical market downturns, and provide actionable insights on how to identify and invest in resilient dividend-paying stocks. Whether you are a seasoned investor or new to dividend investing, understanding how dividends perform during recessions can help you make informed decisions to protect and grow your portfolio. Understanding Recession-Proof Dividends Recession-proof dividends refer to dividends paid by companies that maintain or even increase their payouts during economic downtu...

The Great Depression of the 1930s was a catastrophic economic event that reshaped global economies, financial markets, and investment strategies. Among the many lessons learned during this period, one of the most significant for investors was the importance of dividends. As stock prices plummeted and volatility soared, companies with strong dividend policies provided a beacon of stability and income for beleaguered investors. In today's uncertain economic environment, marked by inflationary pressures, geopolitical tensions, and market volatility, many investors are wondering if we might be heading towards a similar economic downturn. This article aims to explore the dividend lessons from the Great Depression, analyze the current economic landscape, and provide insights on how modern dividend investors can prepare for potential market turbulence. The Role of Dividends During the Great Depression During the Great Depression, the stock market lost nearly 90% of its value from its peak...

The Dot-Com Bubble, a significant financial event of the late 1990s and early 2000s, serves as a cautionary tale for investors. While technology stocks soared to unprecedented heights, many eventually crashed, leading to widespread financial losses. However, not all investments suffered equally. Dividend stocks, often considered a safer bet, displayed resilience during this turbulent period. Understanding how dividend stocks performed during the Dot-Com Bubble offers valuable insights for today's investors, especially in a market environment often characterized by volatility and speculation. The Dot-Com Bubble: A Brief Overview The Dot-Com Bubble was primarily driven by the rapid growth of internet-based companies. From 1995 to 2000, investors poured money into technology stocks, particularly those associated with the burgeoning internet industry. The NASDAQ Composite Index, heavily weighted with tech stocks, quintupled during this time, peaking in March 2000. However, many of thes...

The 2008 financial crisis was a seismic event that sent shockwaves through the global economy. Banks collapsed, stock markets plummeted, and millions lost their jobs and homes. For investors, the crisis was a brutal reminder of market volatility and the importance of resilience in investment strategies. One of the key lessons that emerged from this turbulent period was the significance of dividend stability. Companies that managed to maintain or grow their dividends during the crisis showcased not only financial strength but also provided a lifeline to income-focused investors. In this blog post, we will explore what the 2008 financial crisis taught us about dividend stability, how companies responded to economic stress, and what investors can learn to build robust dividend portfolios for the future. The Role of Dividends in Investment Portfolios Dividends play a crucial role in investment portfolios, particularly for income-focused investors such as retirees. They offer a steady strea...

Introduction When diving into the world of investing, dividends often emerge as a shining beacon of passive income. Many investors are drawn to the allure of consistent cash flow, envisioning a future where dividends could fuel their retirement dreams and help them break free from the grind of a traditional 9-to-5 job. However, the investing world isn't without its pitfalls. One of the most dangerous traps for dividend investors is the dreaded dividend trap . In this comprehensive guide, we'll explore what dividend traps are, why they occur, and how savvy investors can identify and avoid them before they wreak havoc on their portfolios. Drawing from real-world examples and expert insights, this blog aims to equip you with the knowledge needed to steer clear of potential financial landmines. What is a Dividend Trap? A dividend trap occurs when investors are lured into purchasing a stock primarily because of its unusually high dividend yield, only to find out later that the divi...

In a surprising turn of events, former President Donald Trump has floated the idea of sending out "Doge Dividend Checks" to Americans. This concept, initially sparked by a statement from tech mogul Elon Musk, could redefine how government savings are returned to taxpayers. Musk suggested that the Department of Government Efficiency (Doge) had cut enough wasteful spending to justify a $5,000 check to every American. While the initial idea seemed far-fetched, President Trump’s recent acknowledgment of the concept has stirred significant interest and debate. In this blog, we'll explore what Doge Dividend Checks are, where the money might come from, and how this proposal could impact the economy, inflation, and financial markets. We'll also break down whether this could actually become a reality and what it might mean for everyday Americans. What Are Doge Dividend Checks? The term "Doge Dividend Checks" refers to potential tax refund payments distributed to Amer...

The job market is undergoing a seismic shift, one that rivals the massive changes brought on by the 2020 pandemic. While many are unaware of what's unfolding, those who understand these changes are positioning themselves to take advantage of new opportunities. From the rise of remote work to the recent push for a return to office environments, the balance of power between employers and employees is once again in flux. The Pandemic’s Initial Impact: An Employee's Market When the COVID-19 pandemic hit in 2020, it forced businesses to adapt rapidly. Many transitioned to remote work, creating an environment where employees had unprecedented leverage. Employers scrambled to fill roles, offering higher wages, hefty sign-on bonuses, and a slew of perks to attract and retain talent. The “Great Resignation” became a defining trend, as workers left jobs in droves, emboldened by the abundance of opportunities. Between 2020 and 2022, it was an employee’s market. Job seekers had options, an...

The U.S. economy and housing market are experiencing some of the most significant shakeups in recent history. Mass deportations, federal employee layoffs, tariffs on foreign imports, fluctuating mortgage rates, and potential privatization of Fannie Mae and Freddie Mac are all happening at once. These changes are reshaping the real estate landscape, and if you are a homeowner, investor, or prospective buyer, understanding these factors is crucial. In this article, we will explore five major economic shifts and their impact on the housing market. These include: Mass Deportations and Their Effect on Housing Supply and Demand Federal Employee Layoffs and Potential Increase in Foreclosures Tariffs on Housing Materials and Rising Construction Costs The Mortgage Rate Dilemma and Market Uncertainty Privatization of Fannie Mae and Freddie Mac and Its Impact on Mortgage Lending Each of these changes has the potential to significantly influence real estate prices, affordability, and overall marke...