widow-and-orphan stock

Widow-and-orphan stock

A stock paying high dividends with a low beta and noncyclical business, that is an extremely safe investment.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Widow-and-Orphan Stock

A stock that pays high dividends because it has a strong financial position and is in a non-cyclical industry. Widow-and-orphan stocks are generally issued by well-established companies and are considered low-risk investments. See also: Blue chip.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

widow-and-orphan stock

A stock characterized by smaller than average price movements, a relatively high dividend, and little likelihood of dividend reduction or serious financial problems. A widow-and-orphan stock is a conservative investment with limited possibility for large gains or losses.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.