Stocks just had their worst day since April 2025, and valuations sit near a level seen only once before. Here’s how Warren Buffett’s best-known rule applies to your dividend portfolio.
Key Points
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The S&P 500’s CAPE ratio was recently above 41, a level reached only once before (1999-2000).
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Buffett’s rule to be fearful when others are greedy applies to “safe” dividend stocks too. Coca-Cola trades at a premium valuation after its 40% run over the past year.
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Dividend investors can act on Buffett’s advice by not paying any price for income, setting target prices for a shopping list, and turning dividends into dry powder.
