In a Volatile Market, This Dividend Growth Stock Is Worth Every Penny of $1,000

Yahoo Finance ·

When fear and uncertainty hit the stock market, investors typically head for safer harbors. That can manifest in many ways, from very conservative investments like Treasury bills to investments that still provide market exposure, yet are historically less volatile, such as blue chip dividend stocks . There are two key reasons why blue chip stocks that pay a dividend are attractive during a volatile stock market. First, with their consistent dividends, these stocks can provide a baseline of returns whenever the broad market treads water or turns negative. Second, these stocks typically have decades-long dividend growth track records. Past performance may not be indicative of future performance, but these types of stocks typically gain steadily over time in tandem with rising payouts. Hence, with both steady dividend and appreciation potential, they can perform well in both bull and bear markets. Out of scores of high-quality dividend stocks, including Dividend Kings (companies with over 50 years of consecutive dividend growth), Abbott Laboratories (NYSE: ABT) stands out as a name to buy and hold if one fears a more volatile stock market is just around the corner.

DYAX Investor Sentiment

Bullish (Long) 57% · Bearish (Short) 43%

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