With Dropping Interest Rates Conservative Investors Should Look to Stable Dividend Stocks Says Global Partners Securities

As interest rates continue to fall, many investors are scrambling to find dividend producing instruments. People who used to be heavily invested in certificates of deposit or bonds are now finding it increasingly difficult to live on their continually diminishing returns. In light of these changes, dividend producing stocks have become much more attractive to a whole new class of investors.

Of course, there’s no getting around the fact that investment in stocks is a riskier proposition than putting one’s money in bank CDs. A large group of previously arch-conservative investors are looking to expand into the stock market, but are seeking at least some assurance that their investments will have security. While no stock is immune to taking losses, the safest stocks, for a conservative investor, are those that have a history of both yielding regular dividend payouts and having significant shares held by company ownership. This is an incredibly helpful factor in minimizing risk.

“Given plummeting interest rates, the dividend payouts of several historically stable stocks are a very appealing alternative to more traditionally conservative instruments. We’ve hit the point where, for the first time in several decades, the overall dividend stock indices are actually outperforming government issued securities…and that’s on average. With appropriate diligence and sound advice you can find many stocks paying out at 10 percent or more per annum, and even well-known mainstream stocks that are yielding 5 percent or higher,” said Jude Kramer, Head of Global Partners Securities Private Client Division, in a scheduled holiday communiqué released to clients of the firm on November 23rd.

After commenting on the recent expansion of his firm’s Private Client Division, Kramer went on to explain the specific type of dividend stocks that would be most appealing to Global’s expanding, and increasingly conservative, private client base. “Ideally, a conservative investor would like some assurance that someone within a position of influence within the company was looking out for his interest. The easiest way to attain this assurance is to invest in companies that have a significant portion on insider ownership. When you have a company where management owns a large portion of the stock, you can be assured that their incentives to increase dividend payouts align with your own. Basically, these type of companies have explicitly tied their own financial success to that of their shareholders. That being said, there is still no substitute for due diligence. No matter what stock you invest in, you want to have sufficient knowledge about the company’s overall financial stability to know whether or not they have long-term viability. The good news is that a fair few of these dividend paying stocks have both financial stability and a lengthy history of regular dividend payments. Keep in mind that some of the stocks that meet all of the requirements we’ve spoken of may not look that sexy in your portfolio. But when you know that, to cite just one example, a stock as simple as Campbell Soups meets all of these requirements and has increased its dividend payments for seven years running, you’ll likely feel more secure than you would with a far riskier flavor of the month tech start-up.”

Global Partners Securities is a full service investment firm based in New York City. They offer a full range of financial services, including personal and corporate investment, retirement planning and financing for qualified entrepreneurs.

Global Partners Securities
1123 Broadway,
Suite 3002,
New York,
NY 10010, USA

Phone: 1-646-213-2846
Fax: 1-646-607-9244

This release was published on openPR.