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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use