Defensive Investing for Baby Boomers: Arbor Wealth: Consumer Staples and Utilities Indispensible

Published: Thursday, November 1, 2012 at 04:47 PM.

“We favor companies that have historically increased their dividend payouts,” I said.

“So it’s possible to get paid from your investments without depleting your principal?” she asked.

“Oh yes,” I said. “We endeavor to continue growing your principal. But meanwhile, regardless of short-term market fluctuations, our clients are getting paid. We can link the dividends to a checking or savings account and have them arrive each month on a designated day.  It’s basically a replicated paycheck.”

“What happens when the country hits an economic skid?” she inquired.

“Good question,” I said. “We look for U.S. companies that have broad global appeal and who are successful at marketing to highly populated emerging market countries. The U.S. is certainly a huge market for consumer staple items, but in countries throughout the world, more and more people are achieving middle class status, and can now afford to purchase consumer staple goods.”

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