Even blue chip dividend stocks can fall on hard times, especially when they operate in highly cyclical industries that depend
on volatile commodity prices.
Not exact matches
In the past three months alone, Lawson's firm, which specializes in
commodities consulting, has advised 10 companies (including Levi's)
on how to weather the supply shock in a cotton market so
volatile that they are no longer able to lock in
price.
What's fantastic about Enbridge (and companies like it) is the fact that it doesn't rely very much
on the
pricing of
commodities like natural gas, which can obviously be quite
volatile.
The
price of gas that trades
on U.S.
commodity exchanges has been famously
volatile, and multiple spikes in the past decade have caused electricity
prices to skyrocket.
That's especially true if the technique involves predicting the future, or trying to speculate
on the
price movements of
volatile commodities like oil.
What's fantastic about Enbridge (and companies like it) is the fact that it doesn't rely very much
on the
pricing of
commodities like natural gas, which can obviously be quite
volatile.
On the other end of the spectrum are things like
commodities (including precious metals),
prices of which are relatively
volatile and subject to all sorts of unpredictable market forces.