Widow-And-Orphan Stock

AAA

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 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 TERMS
  1. Bear Market

    A market condition in which the prices of securities are falling, ...
  2. Blue-Chip Stock

    Stock of a large, well-established and financially sound company ...
  3. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  4. Bull Market

    A financial market of a group of securities in which prices are ...
  5. Dividend Yield

    A financial ratio that shows how much a company pays out in dividends ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Investing Basics

    How And Why Do Companies Pay Dividends?

  2. Taxes

    Dividend Tax Rates: What Investors Need ...

  3. Markets

    Your Dividend Payout: Can You Count ...

  4. Entrepreneurship

    Do "Widow And Orphan" Stocks Still Exist?

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center