By: Dividend Sensei
Recession risk is rising, and even a mild recession could send the stock market falling another 25%, to -40%.
Yet market timing is proven to be the absolute worst thing you can do, literally the reason that the average investor underperformed the S&P by 67% over the last 20 years.
Thankfully, low volatility dividend ETFs are proven ways to grow income and wealth, through even the most extreme recessions and market crashes.
Combined with three high-yield, low volatility dividend aristocrats, as well as a prudent allocation to cash and bonds, these ETFs create an extraordinary high-yield, low volatility portfolio.
One that yields 3X more than a 60/40, is expected to deliver almost 10% long-term returns, but with 40% less volatility than the S&P and 66% smaller peak declines in even the most extreme bear markets.
It fell just 8% in the pandemic, 15% in the Great Recession, and is down 9% in this bear market, and the probability of it ever falling 20+% is just 0.32% over the next 75 years.