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.

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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. What is the difference between cyclical and non-cyclical stocks?

    Understand the difference between cyclical stocks and non-cyclical stocks. Learn about the underlying demand factors of each ... Read Answer >>
  4. 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 >>
  5. What is the average annual dividend yield of companies in the utilities sector?

    Learn about the average annual dividend yield of companies in the utilities sector and the overall suitability of the sector ... Read Answer >>
  6. 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 >>
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