John Reese
Validea
Jim Powell
Global Changes & Opportunities Report
Timothy Lutts
Cabot Stock of the Month
John Buckingham
The Prudent Speculator

10 top buys for blue chip investors


Bookmark and Share

by Kelley Wright, editor Investment Quality Trends

Kelley Wright IQ TrendsWe 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.

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%

Learn more about this financial newsletter at Kelley Wright's Investment Quality Trends.

Related articles:

    Advertisement
    Banner
    News Flash

    United Natural: A play on Whole Foods
    by Mark Skousen, editor Hedge Fund Trader Alert

    We’ve recommended Whole Foods Market (WFM) from time to time, and the stock has moved up sharply in the past three years, but I’d like to suggest an alternative -- one of Whole Foods’ primary suppliers, United Natural Foods (UNFI).


    Read more...

     

    Timing expert eyes India
    by Sy Harding, editor Street Smart Report

    The money flow and momentum reversals in India's Bombay Index have now been enough to trigger buy signals on intermediate-term indicators. With this new buy signal, we have added a position in the iShares India 50 ETF (INDY) to our portfolio.


    Read more...


       

    Value investor goes with Guess
    by Charles Mizrahi, editor Hidden Values Alert

    Guess?, Inc. (GES) is a holding in our special situation portfolio; its strong product quality has created brand name recognition and a loyal consumer following.


    Read more...

     

    MGAM: Bingo, lotteries, casinos
    by Jim Oberweis, Jr., editor The Oberweis Report

    Multimedia Games Holding Company (MGAM) makes innovative gaming systems for Native American and commercial casino operators in North America, lottery operators, and charity and commercial bingo operators.


    Read more...

     

    Fidelity expert: Bowers' bond bets
    by Jack Bowers, editor Fidelity Monitor & Insight

    If you’ve been worried that the bond market might take a big hit, you can relax. Indeed, while bond funds may lag stock funds over the next 5-10 years, they still have a decent shot at keeping up with inflation, and they remain an excellent way to cut risk in a blended portfolio.


    Read more...

     

    Tesla: 'Out of the ball park'
    by Timothy Lutts. editor Cabot Stock of the Month

    Tesla (TSLA), our previously featured Stock of the Month and our top stock pick for 2013, knocked the ball out of the park in its latest quarter. The company exceeded analysts' expectations on all counts: cars sold, revenues, earnings, gross margins and more.


    Read more...

     

    5 ways to speculate on Cuba
    by Jim Powell, editor Global Changes & Opportunities Report

    With the death of Hugo Chavez in March, and Venezuela’s economic decline, the heavily subsidized oil lifeline is likely to be cut or sharply reduced. I think the resulting energy squeeze will force Cuba to allow greater foreign trade and investment.


    Read more...

     

    Big gains in nanotechnology?
    by Doug Fabian, editor Making Money Alert

    The nanotechnology niche focuses on very small, even microscopic, technology. Nanotech has produced technological developments in medicine (lasers), electronics (ink jet systems) and biomaterials (chemical and bio-detectors).


    Read more...

     

    Gold: Reasons for continued caution
    by Jim Stack, editor Investech Market Analyst

    In October 2011, we questioned the run-up in gold prices to $1,895 an ounce and called prices “bubblish”.  We were criticized for not understanding the new paradigm. Nonetheless, the price of gold has fallen significantly, and I feel more comfortable sharing my personal perspective of what lies ahead.


    Read more...

     

    Buffett's Berkshire is still a buy
    by Geoffrey Seiler, editor BullMarket.com

    Recommended List selection Berkshire Hathaway (BRK.B) reported a 51% increase in net income for the first quarter, powered by profits from its extensive insurance businesses and strong results from the railroad unit.


    Read more...

     



    Banner



    Close
    Select Offer: Schwab Options Market Commentary