"Dividend aristocrats" have historically performed well during recessions. The Standard & Poor's Dividend Aristocrats index was down only 21.88% in 2008. For comparison, the S&P 500 index was down 37% in the same period. The Dividend Aristocrat index is made up of stocks with 25 or more years of consecutive dividend increases. Stocks with a long history of dividend increases tend to have strong, stable cash flows and a history that shows they can weather economic downturns.
Not all Dividend Aristocrats are created equally. Some handle recessions much better than others. McDonald's (MCD_) had the lowest overall maximum drawdown, at -21.65%. McDonald's was also the only Dividend Aristocrat to post positive returns in 2007, 2008, and 2009. Top 5 Recession Proof Dividend Aristocrats: Wal-Mart (WMT), McDonald's (MCD), Exxon Mobil (XOM), Becton Dickinson (BDX) and Kimberly-Clark (KMB).
Source: The Street
Related Articles:
- High Yield, High Risk Dividend Stocks
- Dividend Stocks vs. Dividend ETFs
- If Only I Had Known About These Dividend Stocks...
- 10 Dividend Stocks Delivering The Secret To Success
- 10 Dividend Stocks For A Rainy Day
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
0 comments
Post a Comment
Post a Comment