Could This Sleepy Dividend King Suddenly Wake Up?
Dividend stocks tend to be the safe haven investors seek out in a recession, and with good reason. Going all the way back to 1930, there has never been a decade when dividend payers in the S&P 500 have posted negative returns. Even during the so-called "lost decade" when the broad market index lost 0.44% for the 10-year period between 2000 and 2009, dividend stocks still produced 1.8% positive returns for investors.
Dividend Kings are a small, rare group of companies that not only pay a dividend, but have raised their payouts every single year for 50 years or more. Although their stocks are not immune from having ups and downs over time, they are typically more stable businesses because dividend programs tend to instill discipline and sound financial oversight.
All else being equal, dividend payers will not exhibit as much downside risk as non-payers because shareholder payout can partially offset any lack of capital appreciation. Let's take a look at one example investors might consider now.
Source Fool.com
