Low Debt, High Dividend Stocks

When the stock market collapsed in 2008 and 2009 it seemed that the carnage was indiscriminate. Most stocks' correlations went to nearly 1.0 and it seemed there was nowhere to hide. But it pays to dig deeper and look at companies that held up well during the worst downturn since the Great Depression. It turns out that many of these companies have stable growth, low debt, and relatively high dividends.

There are several interesting things to note here. First, the companies generally produce things that people need or use as staple items such as food, energy, household products, basic clothing and pharmaceuticals. Second, these are well established, stable cash flow companies. Third, relative to their peers in the S&P 500 these companies have low levels of debt. And lastly, these companies have higher dividend yields than their peers.

Source: Safe Haven

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