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Motif of the Week: Stable Is the New Black

14 September 2015 in Trading Ideas

Surely you’ve noticed that market volatility remains elevated. But not everything is moving around like a ping-pong ball.

With analysts estimating that the uncertainty may continue, and doctors saying that worrying about these conditions is bad for your health, anything that looks more stable by comparison has practically become synonymous with nirvana.

One might use that word to describe stocks in companies that consistently increase their dividends—a practice regarded as a sign of a mature business.

These equities have historically exhibited less vulnerability to swings in the market.1

That’s the spirit of the Growing Dividends motif, which includes 25 stocks that have outperformed the Standard & Poor’s 500 for at least 40 years in a row.

The motif has risen nearly 7 percent over the past 12 months, compared to a decline of 0.3 percent for S&P 500.

That’s looks like a good reason to make Growing Dividends the Motif of the Week: you can trade it commission free today through Friday, September 18.

And then go relax!

While certain companies may have consistently paid dividends in the past, there can be no assurance or guarantee that they will be able to continue paying dividends in the future.

$0.00 commission offer is for trades (buys, sells, rebalances) of the benchmark version of the Motif of the Week. Commission-free buys, sells, and rebalances end 4PM ET September 18, 2015. Commissions for the Motif of the Week that is customized in any way – adjust weighting, add or remove securities will include a $9.95 total commission per motif transaction or pay $4.95 per stock for individual stock/ETF transactions. Regular commissions apply for other Motif-created benchmark motifs and customer-created customized motifs ($9.95 total commission per motif transaction or $4.95 per stock for individual stock/ETF transactions).

1 Investopedia Staff, “The Power of Dividend Growth,” Investopedia.com, 2015.