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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use