The article argues that high-yield dividend stocks can help balance a portfolio against a possible market downturn, since reinvested dividends drove most of the S&P 500's returns in the 1970s and 2000s. It highlights Kraft Heinz (KHC), yielding 7.13% with a $0.40 per share dividend held for 8 years, though the stock has fallen 8% year to date and about 13% annualized over 10 years; new leadership is investing around $700 million to restore growth. PepsiCo (PEP), a Dividend King that has raised its dividend for 54 straight years, yields 4.67% after its shares dropped 11% this year and approached a 52-week low. The author expects modest total returns from both but notes that in 2022, Kraft Heinz gained 18% and PepsiCo 7% on a total return basis.
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