Kiplinger

Are Blue-Chip, Dividend-Paying Stocks Really 'Safe'?

For many investors, newbies and veterans alike, there is often an attraction to big corporations. If a company is a household name, and perhaps you even have some of its products in your house, this appears to be a "safe" investment.

Because many of these blue-chip stocks pay dividends, this seems like a win-win situation, especially for retired investors who depend on income. However, as recent history shows, this isn't always the best idea.

What is a blue-chip stock?

In order to be considered a blue-chip stock, a company typically has to have been in business for a

Stai leggendo un'anteprima, registrati per continuare a leggere.

Altro da Kiplinger

Kiplinger25 min letti
29 Great Places to Retire Near the Beach
The lapping waves. The majestic views. The vitamin D. Who can resist the siren song of life at the beach--and why would you want to? A growing body of research is confirming that waterfront living is good for you. For example, a recent study from Hon
Kiplinger8 min letti
7 Low-Volatility Dividend Stocks for Peace of Mind
Dividend stocks are a well-worn prescription for what ails an investor's upset stomach. Are a cascade of troubling headlines and fears of Wall Street volatility making you nauseous? A regular stream of cash distributions can help smooth out your retu
Kiplinger7 min letti
Best and Worst States at Minting Millionaires Since the Financial Crisis
The 10-year bull market in stocks and longest economic expansion in U.S. history have minted many a millionaire since the darkest days of the Great Recession. A decade ago, less than 1 in 20, or 4.9%, of all U.S. households were considered to be mill