Widow-And-Orphan Stock

DEFINITION of 'Widow-And-Orphan Stock'

A stock that pays high dividends and is generally considered to carry low risk. Widow-and-orphan stocks would most likely be in non-cyclical industries that are less likely to be negatively impacted during economic downturns.

BREAKING DOWN 'Widow-And-Orphan Stock'

Prior to being broken up in 1984, AT&T was considered to be a widow-and-orphan stock, and was widely held by all classes of investors. Some utilities are deemed to be safer than the broader market. Investors seeking higher returns may shy away from widow-and-orphan stocks because they provide low returns, regardless of the company size.

RELATED TERMS
  1. Defensive Stock

    A stock that provides a constant dividend and stable earnings ...
  2. Indicated Yield

    The dividend yield that a share of stock would return based on ...
  3. Prior Preferred Stock

    A type of preferred stock with a higher claim on assets and dividends ...
  4. Dividend

    A distribution of a portion of a company's earnings, decided ...
  5. Accumulated Dividend

    A dividend on a share of cumulative preferred stock that has ...
  6. Forward Dividend Yield

    An estimation of a year's dividend expressed as a percentage ...
Related Articles
  1. Entrepreneurship

    Do "Widow And Orphan" Stocks Still Exist?

    Is there such a thing as a safe stock providing high dividend income? It may be time to redefine the terms "widows" and "orphans."
  2. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  3. Stock Analysis

    Stocks Pay Huge Dividends

    Stocks that consistently pay sizable dividends offer important advantages to individual investors. Here are five worth a look.
  4. Stock Analysis

    6 Consumer Staples Yielding High Dividends

    If it's security, stability and a dividend you're after, these stocks are worth a look.
  5. Stock Analysis

    5-Star Dividend Stocks

    Stocks that consistently pay sizable dividends offer important advantages to individual investors. Here are five worth a look.
  6. Stock Analysis

    Consumer Staples That Yield High Dividends

    If it's security, stability and a dividend you're after, these stocks are worth a look.
  7. Stock Analysis

    5 Stocks Sporting High Dividends

    Stocks that consistently pay dividends can be a source of stability for individual investors. Here are five worth a look.
  8. Stock Analysis

    Five Dividend Darlings For Your Portfolio

    Does your portfolio lack a solid dividend yield? Here are five dividend-paying stocks to snap up while their yields are high.
  9. Investing Basics

    Best Places to Find High-Dividend Yield Stocks

    Learn about the advantages of stocks with good dividend yields, such as income, stocks in defensive sectors and strong-performing companies.
  10. Investing Basics

    The Alphabet Soup Of Stocks

    Are the countless stock categories leaving you puzzled? Here we help you sort through the confusion.
RELATED FAQS
  1. What does it mean when utility companies are called widow-and-orphan stocks?

    Learn what is referred to by the phrase "widow-and-orphan stocks," as applied to utility companies, and the appeal of utilities ... Read Answer >>
  2. What is the long-term outlook of the utilities sector?

    Discover the long-term outlook for the utilities sector, along with the various aspects that make utility stocks appealing ... Read Answer >>
  3. Why have utility stocks become more volatile investments than they were historically?

    Examine the current state of the utilities sector, and learn why analysts are forecasting uncharacteristic levels of volatility ... Read Answer >>
  4. What are defensive stocks?

    The term defensive stocks is synonymous to non-cyclical stocks, or companies whose business performance and sales are not ... Read Answer >>
  5. Why is buying a utility stock known as defensive move?

    Utility stocks are known as defensive stocks for investors due to the fact that consumer demand will remain high even when ... Read Answer >>
  6. What techniques are most useful for hedging exposure to the financial services sector?

    Learn how smart investors hedge exposure to the financial services sector by also investing in utilities, blue chips and ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center