widow-and-orphan stock

Widow-and-Orphan Stock

Relatively low-risk stocks from well-known firms that pay high dividends.

Notes:

Widow-and-Orphan stocks are generally chosen during bear markets and ignored during bull markets. This is because these companies are perceived to be able to maintain their dividend payment schedule through difficult financial times.

See also: Bear Market, Blue Chip Stock, Bull Market, Dividend Yield, Large Cap

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Widow-and-orphan stock

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

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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.