Dividend Stocks Remain As A Refuge

When nearly every stock has fallen sharply in value, it may be hard to take comfort in any fundamental investment advice. What good does it do to "stay the course" when your retirement assets are vanishing in real time? Despite the market's loss of nearly a sixth of its value in only a few weeks, the stocks of companies with strong dividend records remain a relatively safe haven.

Market downturns spur a flight to safety by investors. Demand for U.S. treasury securities has risen, ironically, since Standard & Poor's downgraded the U.S. credit rating to AA+ from AAA. That's because few people feel there's a safer investment out there, despite what S&P says. Similarly, blue-chip stocks have held up better than other equities. While all stock indexes have plunged, the decline in the Dow Jones Industrial Average of 30 big stocks has been smaller.

Source: U.S. News & World Report

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