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IQ Trends: The Timely Ten for quality and yield


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By Kelley Wright, editor Investment Quality Trends 

Kelley Wright IQ TrendsOur primary purpose is to assist subscribers in growing their capital and income base from which to derive cash for their current and future needs.

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

For investors effectively mirror our Model Portfolio for performance tracking purposes (every stock in the Undervalued and Rising Trend categories), would require holding one hundred sixty six stocks as of the Mid-January issue; clearly too many positions to be practical. 

The Timely Ten, therefore, is not just another “best of, right now” list. It is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years. 

Do we believe that all 10 will go up simultaneously or immediately? Of course not. Our four decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for both growth of capital and income. 

Our primary purpose is to assist subscribers in growing their capital and income base from which to derive cash for their current and future needs. To that end 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 as of each issue. 

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Short of utilizing the personal investment management services of our sister company, this is as close to hands on advice you can get. 

The Timely Ten consists of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, a “G” designation for exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less (75% for Utilities), debt of 50% or less (75% for Utilities), and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.

This issue’s selections are: 

Abbott Labs (NYSE: ABT) - yield 3.0%

Philip Morris Int'l NYSE: PM) - yield 5.0%

Mc Donald's (NYSE: MCD)-  yield 3.5%

Procter & Gamble (NYSE: PG) - yield 2.9%

Coca-Cola (NYSE: KO) - yield 3.0%

Chevron Corp. (NYSE: CVX) - yield 3.7%

Molson Coors (NT|YSE: TAP) - yield 2.3%

PepsiCo, Inc. (NYSE: PEP) - yield 3.0%

Clorox (NYSE: CLX) - yield -3.4%

Automatic Data Processing (NYSE: ADP) - yield 3.3%


Editor's note: Dividends Don't Lie -- by IQ Trends founder Geraldine Weiss -- is one of the all-time great investment books. Now, editor Kelley Wright is following up this classic with Dividend Still Don't Lie, which can be pre-ordered at a significant discount.


Learn more about this financial newsletter at IQ Trends.


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