In an economic downturn many investors turn to dividend stocks which are sometimes referred to as defensive stocks. These stocks offer sustainable dividends providing the investor with a minimum level of positive return, which helps buffer the downward pressure from the market. But what happens when the market turns up?
Dividend stocks tend to have low betas. That means during a market downturn, they tend to decline less than the total market. Hence, the term defensive stocks. It is also important to note that many defensive stocks are non-cyclical. Examples would include food, tobacco, oil, and utilities where demand is remains stable under difficult economic conditions. Here are several dividend stocks with betas (as provided by Google Finance) less than 1.00:
Source: Dividends Value
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Posted by D4L | Monday, May 31, 2010 | ArticleLinks | 0 comments »________________________________________________________________
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