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.

The collapse in the stock market and economy that occurred in 2008 was due to the massive credit bubble bursting. Companies with high debt loads were rightfully punished by the markets. Only a whole host of bailouts and Federal Reserve programs saved many of these debt-laden companies. Most of these companies (and our government) are now even more leveraged than before. If and when the next credit-related downturn occurs, you can feel much safer in [low-debt] stocks and collect your nice dividend checks along the way.

Source: Seeking Alpha

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