Timely 10: Blue-chip dividends

These high-quality stocks are well positioned for growth and income.

By TheStockAdvisors Jul 17, 2013 12:06PM

Arrow Up (© Photodisc/SuperStock)By Kelley Wright, Investment Quality Trends


Our primary purpose is to assist investors in growing their capital and income base from which to generate cash for their current and future needs.


To that end, we believe that shares of high-quality stocks purchased at an historically repetitive area of low-price/high-yield offers the greater potential for downside protection and upside appreciation.


Our Timely Ten list of stocks is not just another "best of, right now" list. Rather, it is our reasoned expectation based on our methodology and experience, that these 10 currently undervalued stocks offer the greatest real total-return potential over the next five years.


Do we believe that all 10 will appreciate simultaneously or immediately? Of course not. Our four-plus 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.


Whether you are building a portfolio from scratch, are partially invested and seeking new positions, or are fully invested and in need of some affirmation and hand holding, The Timely Ten represents our top 10 recommendations.


The Timely Ten is comprised of stocks that are undervalued based on their historic yield level. They generally have an S&P Dividend & Earnings Quality ranking of A- or better, and show exemplary long-term dividend growth.


These stocks also typically have a price-to-earnings ratio of 15 or less, a payout ratio of 50% or less (75% for utilities), long-term debt-to-equity ratio of 50% or less (75% for utilities), and technical characteristics on the daily and weekly charts that suggest the potential for imminent capital appreciation.


Our latest Timely Ten selections are:


CVS Caremark (CVS) -- yielding 1.6%

Coca Cola (KO) -- yielding 2.8%

Chevron (CVX) -- yielding 3.4%

Air Products & Chemicals (APD) -- yielding 3.1%

Baxter International (BAX) -- yielding 2.8%

Exxon Mobil (XOM) -- yielding 2.8%

Wal-Mart Stores (WMT) -- yielding 2.5%

Reliance Steel (RS) -- yielding 1.8%

Walgreen (WAG) -- yielding 2.5%

Norfolk Southern (NSC) -- yielding 2.8%


More from TheStockAdvisors.com

19Comments
Jul 17, 2013 3:25PM
avatar

"WTF are you talking about, I'm invested in some of them; They have been around longer than you and I together, or almost."

 

Besides you... what else has been around that long and hasn't gone wrong, corrupted or hired in some Ivy League losers to administrate and calculate them into oblivion? I assume your retirement strategy was to kick back, play rich person and watch your portfolio grow enormous just because you own it. A great number of you IDIOTS are doing just that. In case you aren't paying attention-- they sold all the tangible assets, awarded themselves premium (untouchable) stock and delved into derivatives that are priority pay-out ahead of YOUR stock. They don't make stuff, they don't hire Americans, they over-pay for law, accounting, financial and political support, protection and influence. What in particular do you have? At least TWO whole generations alive today do NOT have viable careers. It's not THEIR problem, it's YOUR FAILURE. It's been no less than 5 years since Bernanke has been keeping your Kool Aid Boat afloat. The future can't afford him to keep doing it much longer and the present needs him to stop, collapse these cardboard boxes and get down to business, hiring and establishing a genuine economy. MOVE, loser. You have stayed too long at the expense of the rest of the world.  

Jul 17, 2013 2:39PM
avatar

VL:If people don`t like stocks, stay away from them.Put your money in CD`S and be

thrilled to get 1%.

Jul 17, 2013 2:47PM
avatar
WTF are you talking about, I'm invested in some of them; They have been around longer than you and I together, or almost.
Jul 17, 2013 5:12PM
avatar

Someone, good job.

 

I'm not going to dignify his remarks anymore, they have only been the ravings of a Lunatic.....

Jul 17, 2013 4:24PM
avatar

V-L

 

I invest in only blue chips and am happy to report that each year after the mandatory withdrawal from my IRA it is more valuable than the year before and that applies to my portfolio as well.

Jul 18, 2013 7:25AM
avatar

Well. V-L my investment history has proved that I have some degree of intelligence to have a winning stock portfolio as I always choose my own investments. Most any one can do the same if you stick to conservative investment principles. 

 

You should try it, on the other hand you better not as you would pick the likes of Solyndra.

Jul 17, 2013 3:33PM
avatar
Why on Earth would anyone invest in a Blue Chip? They mass-terminated us in 2007-08 and hired in new people for less than anyone could survive on. They installed dumb alumni in key positions, who ruled personnel without ethics, character or goals that might actually be achieved. All you have here is the remnants of the 20th Century the rest of us are desperately trying to pull away from. There isn't a company listed that has a rat's chance of survival into 2015. What's the matter, can't dupe anymore really old people into investing in your stocks solely by your brand recognition? Divest and dissolve already... give the future a chance for survival you greedy losers.
Jul 17, 2013 3:45PM
avatar
Bank of America mid day mover ?  DIE BANK OF AMERICA DIE !
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

133
133 rated 1
286
286 rated 2
441
441 rated 3
737
737 rated 4
614
614 rated 5
606
606 rated 6
621
621 rated 7
441
441 rated 8
317
317 rated 9
122
122 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
VZVERIZON COMMUNICATIONS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.