Well, we’ve made it to mid-December, and there’s no signs that the fiscal cliff will be averted. While a deal still could be in the offing, investors and companies alike are trying to come to terms with the potentially onerous tax burden on dividends they might be forced to face.
That’s resulted in everything from a slew of companies unleashing special dividends or rushing to write their fourth-quarter checks before the ball drops on 2012, to investors fleeing income equities – even ones that won’t be affected.
Not to mention, a no-go in Washington means a huge chunk of government spending is hitting the bricks, which could trigger a big-time selloff across American markets. That said, there’s one thing you can count on: Deal or no deal, stable blue chips paying out fat dividends aren’t going to look any less attractive come Jan. 1.
Through thick and thin, there’s something to be said about established, financially sound American companies. They can climb along with the rest of the market when things go well, but hold their ground when the floor collapses — while giving you a steady stream of income.
Those looking for a low-risk way to ride out the cliff might want to consider these top 10 Dow dividend stocks — all of which yield well over 3%: