10 blue-chip buys

Based on their historic yield patterns, here are some favorite stocks for growth and income.

By TheStockAdvisors Apr 20, 2012 2:21PM
By Kelley Wright, IQ Trends

Our current Timely Ten buy list is our reasoned expectation -- based on our methods and experience -- of which stocks we believe will perform best over the next five years.

In our view, high-quality stocks purchased at historically low price to high yield offer the best potential for downside protection and upside appreciation.

They consist of undervalued stocks that generally have an S&P dividend and earnings quality rating of A- or better and have a history of exemplary long-term dividend growth.

These stocks also have a price-to-earnings 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 that suggest the potential for imminent capital appreciation.

Do we believe that all 10 will go up simultaneously or immediately? Of course not.

Our four-plus decades of research and experience, however, leads us to believe that these stocks, purchased at historically undervalued levels, are well positioned for both growth of capital and income.

Our latest Timely Ten selections, along with their recent dividend yields:

Chevron (CVX) -- yielding 3.2%
Eaton Corp. (ETN) -- yielding 3.2%
Coca-Cola (KO) -- yielding 2.8%
Occidental Petroleum (OXY) -- yielding 2.4%
Union Pacific (UNP) -- yielding 2.2%
ConocoPhillips (COP) -- yielding  3.5%
United Technologies (UTX) -- yielding 2.4%
Johnson & Johnson (JNJ) -- yielding 3.6%
CVS Caremark (CVS) -- yielding 1.5%
Harris Corp. (HRS) -- yielding 3.0%

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, these stocks represent our top current buy recommendations.

Related
5Comments
Apr 20, 2012 5:33PM
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To quote GG, greed is good, I'm not at the top, I work hard for what i've earned, saved and invested.  Without big $ there is no place to invest, no investment = stagnation and America is pushed out of the #1 spot.  It's lazy people who are the problem, want everything given to them.  If everyone made there own way there would be no reason to redistribute.

Apr 20, 2012 8:08PM
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hey Greed is glorious, etal,

 

Root out corruption.  Ok, sounds great and well we are at it lets eliminate fraud, waste, and abuse.  Gee you should elect me Preisdent.  The problem is, does that all sound familiar to anyone?  What politician does not promise such things?  Not to mention the FACT that orruption, waste, fraud is hardly our problem.  Sure there is pleny of all of those things, but hte reatlity is we simply spend too much money.  AND THE PROBLEM IS LIKELY FACING YOU IN THE MIRROR.  Everyone wants their welfare check.  I want my farm subsidy, and I CAN JUSTIFY IT!!! I want someone to pay to put my kids through college, and naturally that will be a great investment for America.   I want someone to pay for my medical (I have the money for flat screen TVs, Cable Bills, Cell phones, and eating out, but surely don't want to pyay for my own Medical).  And on and on and on.  Hell, why not steal other peoples money to pay for my stuff.  Oh yeah and get that corruption

 

Apr 20, 2012 8:12PM
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We spend four trillion dollars.  How much is fraud?  Really.  Even 500 billion in fraud does not sove our personal greed for government to steal one from other people to feed ourr greed for hand outs.
Apr 20, 2012 10:25PM
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SmileHi, you forgot Wal-Mart stock, right now it is trading at over $62.00, in the stock decline in 2008 at the stock Markets worst in a long time I never lost money on Wal-Mart stock !
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