Suze Orman Says You Don’t Have to Buy Every Market Dip. Here’s Why

Suze Orman recently advised investors to resist the impulse to react to every dip in the stock market. On the October 25 episode of her Women & Money podcast, titled "When Is a Decision Right For You?", she emphasized that it is not always necessary to take action when markets decline. "You don't have to think, oh, the markets went down, I have to dollar-cost average, now is the time. No, you don't always have to do something," she stated.

Orman linked this advice to the uncertainty that often plagues the markets. She noted, "The market doesn't like inconsistency. It doesn't like not knowing what's going to happen." She further elaborated that markets are shaped over extended periods, saying, "Markets are not made in 20 days. Markets are made over 10 and 20 years." Orman maintains a guideline for investors, suggesting that money allocated to stocks should be set aside for at least five to ten years.

In related news, Realty Income recently announced its 673rd consecutive monthly dividend and marked its 115th consecutive quarter of increased payouts. ExxonMobil has also achieved a significant milestone, extending its streak of annual dividend increases to 44 years. PepsiCo, on the other hand, anticipates disbursing $7.9 billion in dividends in 2026.

Orman's insights come at a time when many investors may feel pressured to make quick decisions during market fluctuations. A key aspect of her argument is that dividend-paying stocks become particularly valuable during downturns. She pointed out that these stocks allow investors to "be paid to wait," providing a buffer against the need to sell shares at a loss.

This perspective is especially crucial for retirees, who often face challenges when managing expenses during market sell-offs. Wes Moss, a financial advisor, discussed this on The Clark Howard Podcast, explaining that if a portfolio generates dividends and interest, it can effectively cover income needs without requiring the sale of stocks at unfavorable prices. "If your portfolio is producing dividends and interest, it may very well be able to cover your income gap every single year so that you don't mess with the principal," Moss noted.

Orman reaffirmed this notion in a 2023 podcast episode, stating that during market declines, dividend stocks "truly come into play" as they provide a steady income stream. This strategy allows investors to remain patient and avoid making hasty decisions that could negatively impact their long-term financial goals.

In a broader context, recent analyses have identified the top stocks to consider for investment, with a focus on quality over quantity. Notably, Procter & Gamble (P&G) was excluded from a recent list compiled by analysts at 24/7 Wall St., which focused on the ten best stocks to buy right now. The report, which is available for free, aims to guide investors in choosing stocks that offer strong potential for growth.

As the market continues to fluctuate, Orman's advice serves as a reminder for investors to remain calm and consider the long-term implications of their decisions. With dividends playing a critical role in investment strategies, especially during downturns, her message resonates strongly with those looking to navigate the complexities of the stock market.