Timely 10: The market's best blue-chip buys
Based on historical yield, these stocks are high-quality growth-and-income ideas for long-term investors.
By Kelley Wright, Investment Quality Trends
Our primary purpose is to assist investors in growing their capital and income base from which to derive cash for their current and future needs.
To that end we believe high-quality stocks purchased at historically low price to high yield offer the best potential for downside protection and upside appreciation.
Our updated Timely 10 list is our reasoned expectation based on our method
and experience for what we believe will perform best over the next five years.
The Timely 10 consists of undervalued stocks that generally have an S&P Dividend & Earnings Quality rating of A- or better and have a history of exemplary long-term dividend growth.
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These stocks also have 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.
Our latest Timely 10 selections are:
- Coca-Cola (KO) -- yielding 2.7%
- Johnson & Johnson (JNJ) -- yielding 3.5%
- AT&T Inc. (T) -- yielding 5.8%
- Abbott Labs (ABT) -- yielding 3.5%
- United Technologies (UTX) -- yielding 2.4%
- PepsiCo (PEP) -- yielding 3.3%
- Eaton Corp. (ETN) -- yielding 2.9%
- Exelon Corp. (EXC) -- yielding 4.7%
- CVS Caremark (CVS) -- yielding 1.4%
- 3M Company (MMM) -- yielding 2.7%
Our four-plus decades of research and experience, however, lead us to believe that these stocks, purchased at historically undervalued levels, are well-positioned for both growth of capital and income.
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 current recommendations.
Here comes a positive product announcement from Intel and HP -- together -- which may shake the market.... Due in ten days.
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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.
With the universe of this category in its seasonal sweet spot, these picks have tailwinds propelling them into the new year.
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