Investor Glossary-widow-and-orphan stockInvestor Glossary-widow-and-orphan stockInvestor Glossary-widow-and-orphan stockInvestor Glossary-widow-and-orphan stockInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Widow-and-orphan Stock

The HTML to link to this page
 

A widow-and-orphan stock is a low risk stock that pays a consistently high dividend and has less volatility than the overall stock market. A widow-and-orphan stock provides a safe haven from market risk and maintains dividend payments through good and bad economic times. The term widow-and-orphan stock originated in the 1930s and refers to their suitability as an investment for widows and orphans. A typical widow-and-orphan stock is a share of a mature, well known company with a leading market share in a noncyclical industry. A classic example of a widow-and-orphan stock is any of the public utilities prior to industry deregulation. These stocks fit the criteria of a widow-and-orphan stock because of their monopoly positions and high dividend yields.



Rate this widow-and-orphan stock definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: real GDP, inflation, phantom income, liquidity ratio, per diem, retained earnings, FICO score, Key Rate Duration, Zero Cost Collar, deferred tax, covered put, labor relations, irrevocable trust, ex-dividend date, minority interest, option premium, command economy, 1031 exchange, 1035 exchange, 401a, dividends payable, risk management, current ratio, LIBOR, balance sheet, open position, VIX, implied volatility, EBITDA, in escrow, 144a, margin rate, stock market close, quality assurance, reverse mortgage, stock split, diluted share, wholly-owned subsidiary, required rate of return, average price per share, debt service coverage, APR, annual return, ex-dividend, cancelled check, deferred revenue, FTSE, limit order, class C shares


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use