Bear markets are challenging times for investors. However, those challenges can create unique opportunities. 

One benefit of a bear market is that dividend yields move in an inverse relationship with stock prices. Because of that, when share prices have tanked, income-focused investors can scoop up some particularly lucrative income streams. And in the views of three of our contributors, the current Wall Street downturn has made Honeywell (NASDAQ: HON), Phillips 66 (NYSE: PSX), and Energy Transfer (NYSE: ET) into even more appealing dividend stock opportunities.

Reuben Gregg Brewer (Honeywell): One of the best methods for a small investor to pick stocks is to look for historically well-run companies that have fallen on hard times. Industrial giant Honeywell, down around 20% from its mid-2021 high, seems to fit this description. A good portion of its drop has come during the 2022 bear market. But investors who buy its shares now can collect a dividend that, at the current stock price, yields 2.1%. And its payouts are  backed by more than a decade of annual increases, which makes Honeywell a Dividend Achiever.

Continue reading

Source Fool.com