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Best of the Best: Today's Top Investment Ideas
Timely Ten turns to top quality Print E-mail Digg It!
Friday, 26 September 2008

 “Our Timely Ten -- our top ten current buys -- is the best collection of high-quality stocks at or near historic low prices and high yields I have seen,” says Kelley Wright in IQ Trends.

“Strictly from an information standpoint, this is the most confusing, contradictory and divergent period I can recall.

“I believe the market is telling us more work needs to be done. But while the bottoming process goes through its motions, the Undervalued category --  those stocks showing historic levels of undervaluation based on this dividend yields -- continues to grow as real value is being created.

"As opposed to 2005 through 2007, there is now no reason to bottom fish for the hot turnaround. Rather, classic big names and yields are plentiful. So investors can stick with the highest quality.

“The Timely Ten 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 appreciation.

“The Timely Ten consists of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, and a designation for exemplary long-term dividend growth. 

“These stocks also usually show 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. 

“Here are the current Timely Ten:

Altria Group (NYSE: MO)
United Technologies (NYSE: UTX)
PepsiCo (NYSE: PEP)
Johnson & Johnson (NYSE: JNJ)
Automatic Data Processing (NYSE: ADP)
Coca-Cola (NYSE: KO)
General Electric (NYSE: GE)
International Business Machines (NYSE: IBM)
Century Telephone (NYSE: CTL)
Wal-Mart Stores (NYSE: WMT)




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