History Says Dividend ETFs Can Protect Your Portfolio if a Stock Market Slump Is Coming

During the 2022 bear market, dividend-focused ETFs outperformed the S&P 500, falling less than the broader market. While the protective benefit is modest, the real advantage is psychological—dividend payments help investors stay invested through volatility and enable automatic buying at lower prices through dividend reinvestment, which historically has been key to long-term wealth building.