Search Investopedia

Widow-And-Orphan Stock

Filed Under » ,
Dictionary Says

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.
Investopedia Says

Investopedia explains '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 Definitions

  •

    Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear ...
    Read More »

  • Blue-Chip Stock

    Stock of a well-established and financially sound company that has demonstrated its ability to pay dividends in both good and bad times.
    Read More »

  • Bull Market

    A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied ...
    Read More »

    • Dividend Yield

      A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on ...
      Read More »

    • Large Cap - Big Cap

      A term used by the investment community to refer to companies with a market capitalization value of more than $10 billion. Large cap is an abbreviation of the term "large market ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions