Cover Your Assets With Dividend Stocks
August 8, 2009 by Tisa Silver
Filed under Finance
I spent the week covering defensive stocks, and today I will write about another way to cover your assets.
When I hear the term “cover your assets,” it’s usually concerning someone who wants to hide their valuables from bill collectors, a former spouse, the government or lawsuit settlements.
Photo courtesy of Rob Lee, courtesy of flickr
Nothing that dramatic today! I am referring to covering the assets your investment portfolio. The defensive stocks I covered can provide protection during a recession. Aside from making products that have pretty steady demand, these stocks share another important characteristic: they pay dividends.
Here are their dividend yields: Colgate-Palmolive (2.5%), Reynolds America (7.8%), Molson Coors (2.1%), Kraft Foods (4.1%), Campbell Soup (3.3%), McDonald’s (3.6%), Coca-Cola (3.3%), Procter & Gamble (3.4%), Pepsi (3.1%), and Merck (5.2%).
BTW: The yields above are based on yesterday’s closing prices.
Dividends provide a positive cushion in a sagging stock market, and they can protect your investments against inflation. For a list of dividend paying stocks, visit the Dividend Detective.
