What causes a stock to sell off?

For instance: A company may provide lower earnings guidance, leading to a sell-off in its shares. Negative news, such as a food safety issue, can result in a restaurant chain’s stock selling off. Unforeseen economic data, like higher-than-expected inflation, can lead to sell-offs in related securities.

How often do sell-offs occur in the stock market?

If we take a closer look at sell-offs in, say, the 5% to 9.9% range, the frequency is even more common. In other words, don't be surprised if the stock market pulls back from time to time. 2. Sell-offs/corrections usually don't last very long

Are sell-offs a good time to pick up dividend-paying stocks?

Lastly, sell-offs are a great time to pick up dividend-paying stocks that have a track record of growing their payouts. According to a 2013 report from J.P. Morgan Asset Management, companies that initiated and grew their payout between 1972 and 2012 returned an average of 9.5% per year during this 40-year stretch.