logo
  Join        Login             Stock Quote

10 Top Buys For Blue Chip Investors

 December 20, 2012 12:49 PM
 


by Kelley Wright, editor Investment Quality Trends

We believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.

Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or fully invested and in need of some affirmation and hand holding, The Timely Ten represents our top ten recommendations.

The Timely Ten consists of Undervalued stocks that show exemplary long-term dividend growth, a P/E ratio of 15 or less and technical characteristics that suggests the potential for imminent capital appreciation.

[Related -Express Scripts Holding Company (ESRX): Should You Own ESRX in 2014?]

We particularly focus on metrics that are less affected by cyclicality; most specifically the cash dividend and the dividend trend.

For the long-term health and viability of a company's dividend, it is important that the company builds flexibility into the structure of their business to be able to withstand the inevitable downturns that occur within the normal course of the business cycle.

Two examples of a flexible structure are a manageable level of debt and a payout ratio (the percentage of earnings that are paid to the shareholders as dividends) that will not endanger the dividend in the event earnings are impacted by poor macro-economic conditions.

We continue to suggest that our tried and true screens of identifying high quality and good current value, such as limiting considerations to undervalued companies with a modest level of long-term-debt-to-equity will continue to provide long-term real total returns.

Our latest Timely Ten selections are:

CVS Caremark (CVS) -- yielding 1.3%
Chevron Corp. (CVX) -- yielding 3.3%
Union Pacific (UNP) - yielding 2.2%
Coca-Cola (KO) - yielding 2.7%
McDonald's (MCD) -- yielding 3.5%
Air Products & Chemicals (APD) -- yielding 3.1%
Nike (NKE) - yielding 1.7%
United Technologies (UTX) -- yielding 2.7%
Disney (DIS) - yielding 1.5%
Occidental Petroleum (OXY) -- yielding 2.8%
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.