Building on Buffett's advice, here is one investment strategy that could help your portfolio weather the current downturn
Many dividend stocks outperform the market during downturns, especially those that regularly raise their payouts. The reason for that is simple. Only high-quality businesses generate enough cash to consistently pay shareholders a dividend that increases over time. If you reconcile that idea with Buffett's advice, the Vanguard High Dividend Yield ETF looks like an attractive investment idea right now.
The Vanguard High Dividend Yield ETF comprises 443 U.S. stocks that span 10 market sectors, all tend to outperform in inflationary and rising interest rate environments.
Also noteworthy, four of the index fund's top 10 positions are stocks Buffett owns through Berkshire Hathaway. That includes Chevron and Bank of America.
Better yet, the Vanguard High Dividend Yield ETF bears an expense ratio of just 0.06%, meaning you would pay just $6 on a $10,000 portfolio, and its dividend yield currently sits at 2.72%, meaning a $10,000 portfolio would generate $272 in passive income each year.
$Berkshire Hathaway 13F(BK2999.US$ $Berkshire Hathaway-A(BRK.A.US$ $Berkshire Hathaway-B(BRK.B.US$ $Bank of America(BAC.US$ $Vanguard High Dividend Yield ETF(VYM.US$
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Some famous words of Buffett. I hope it's useful to you. : )
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