- Dividend Data
- Posts
- My Plan For The Stock Market Crash
My Plan For The Stock Market Crash
In partnership with
The Market Is Crashing!
With the recent stock market correction, I'm here to discuss how I'm preparing my long-term dividend growth stock portfolio for the possibility of a full-blown market crash. On top of this, I share the massive earnings news this week which may decide the market’s fate.
Let’s do this!
Was this email forwarded to you?
The Key Story
My Plan For The Stock Market Crash
Market Correction and Fears of a Crash
We are currently experiencing a stock market correction, with the NASDAQ 100 down 10.8% from its July high. The Japanese stock market had its worst drop in history, even surpassing the Black Monday crash of 1987. The NASDAQ 100 is expected to open Monday down another 5.5%, signaling a massive sell-off ahead. The S&P 500 is expected to drop another 2.5%, and Bitcoin has fallen 10% in one day, nearly 20% over the past five days.
Global Uncertainties
Several factors are contributing to market instability: global conflicts, a slowing job market, potential recession, low savings rates, upcoming elections, and surprising news like Warren Buffett selling half of his massive Apple position. These uncertainties are causing fear to ramp up in the stock market.
My Dividend Growth Portfolio
First, let’s take a look at my current dividend portfolio. I update it every month on my website, dividenddata.com. Here’s a snapshot of my portfolio’s performance:
Current Value: $181.5K
Total Invested: $122K
Total Return: +$59K
Key Holdings and Strategy
My portfolio includes high-quality, high-margin businesses with wide economic moats. These companies consistently grow earnings, providing reliable dividend payments and share repurchases. Some of my top holdings include:
Microsoft (MSFT): Largest position, benefiting from high-margin cloud services and software.
Visa (V): Recently added, fitting the criteria of scalable, high margin & cash-flow businesses.
Altria Group (MO): High dividend yield, generating significant income for reinvestment.
Exxon Mobil (XOM): Bought during 2020 at a discount, providing a high yield on cost.
Dividend Income
I recently had my largest month of dividend income ever in July, totaling $586.79. This income is consistently reinvested, buying more shares, especially during market downturns.
Recent Purchases
In the past month, I’ve taken advantage of market volatility to buy:
Visa: 16 shares at $255.69 per share
Disney: 4 shares at $89.98 per share
Starbucks: 4 shares at $72.89 per share
Preparing for a Market Crash
A potential market crash should not be feared but seen as an opportunity. Legendary investor Peter Lynch emphasized that market declines are normal and should be expected. Here’s how I’m preparing:
Building a Watch List: I have a list of high-quality stocks I’m targeting, ensuring I’m ready to buy when prices drop.
Maintaining Cash Reserves: It’s crucial to have cash ready to take advantage of buying opportunities.
Focusing on Quality: During a crash, I prioritize buying the highest quality stocks like Microsoft and Visa. Blue Chip companies often have the shortest buying window in a stock market crash.
Avoiding Low-Quality Stocks: While some stocks may appear cheap, they may have structural problems that make them risky investments. These stocks will often have a far longer buying window.
Long-Term Perspective
Investing in stocks means buying partial ownership in businesses. It’s important to focus on the underlying value and earnings potential of these companies. Legendary investors like Warren Buffett advise investing in companies that will remain strong over the long term, regardless of market fluctuations.
Conclusion
A stock market crash is an opportunity to buy quality companies at discounted prices. By maintaining a long-term perspective and focusing on the fundamentals, you can navigate market downturns successfully. I’m continuing to build my dividend growth portfolio, and I’m prepared to take advantage of any market corrections.
Big Earnings Week (Monday-Friday)
Monday (Before Market Open):
$TSN - Tyson Foods, Inc.
Monday (After Market Close):
$O - Realty Income Corporation
$PLTR - Palantir Technologies
Tuesday (Before Market Open):
$CAT - Caterpillar
$UBER - Uber Technologies
$DUK - Duke Energy
$J - Jacobs Solutions
Tuesday (After Market Close):
$AMGN - Amgen
$ABNB - Airbnb
$SMCI - Super Micro Computer
$TOST - Toast
Click The Link Below To Get FULL Earnings Calendar
Track Company Earnings Like a Pro
Earnings Hub is designed for investors to give you everything you want to know about company earnings, including:
An Earnings Calendar
Expectations & Actuals
Listen to Earnings Calls Live (or replay)
Earnings Call Transcripts & AI Summaries
Realtime News on your favorite stocks
Alerts delivered via Text or Email
Most of the features are FREE! Premium features are 50% off right now at just $49 for an entire year.
Wednesday (Before Market Open):
$NVO - Novo-Nordisk A/S
$DIS - The Walt Disney Company
$SONY - Sony Group
$CVS - CVS Health Corporation
$SHOP - Shopify
$EMR - Emerson Electric
$HLT - Hilton Worldwide Holdings Inc.
$NYT - New York Times
Wednesday (After Market Close):
$MCK - McKesson
$OXY - Occidental Petroleum
$MNST - Monster Beverage
$HUBS - HubSpot
$APP - Applovin
$WBD - Warner Bros Discovery
$HOOD - RobinHood Markets
Thursday (Before Market Open):
$LLY - Eli Lilly
$BN - Brookfield
$DDOG - Datadog
$UA - Under Armor
Thursday (After Market Close):
$GLD - Gilead Sciences
$PARA - Paramount Global
$U - Unity Software
$MAIN - Main Street Capital
Thanks for the read! Let me know what you thought by replying back to this email.
— Zach
Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter