Dividend Stocks Capable Of Weathering Storms

When picking stocks, it is prudent to have a portion of your portfolio, or an entirely separate portfolio, devoted to companies that can triumph through market turmoil. Big companies with solid, annually-increasing dividends should form the backbone of a retirement portfolio. Don’t get me wrong, risk is certainly respected and necessary, but in appropriate doses. Basic portfolio management should dictate the amount of risk you are willing to take on.

However, safety should not be shunned, especially in times like these when these large-cap stocks can be purchased at a discount. Imagine the current dividend yields of investors who loaded up in the first quarter of 2009 in big stable companies. That is why you should have a list of companies that you personally have faith in and can watch diligently for times to buy more. They should be large-cap stocks with large moats with a dividend history of increasing annually. Preferably they will be yielding over 3% and you will buy them on the low end of trends to pick up some capital appreciation when you can.

Source: Seeking Alpha

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