IQ Trends' top 10 blue chips
For income investors with a long-term horizon, here are 10 favorite dividend-paying blue chips.
By Kelley Wright, IQ TrendsOur 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 that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.
Our current Timely Ten list 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-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.
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.
The Timely Ten consists of undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, and have a history of exemplary long-term dividend growth.
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 Ten selections are:
Union Pacific (UNP) - yielding 2.2%
Johnson & Johnson (JNJ) - yielding 3.5%
Coca-Cola (KO) - yielding 2.8%
United Technologies (UTX) - yielding - 2.5%
Eaton (ETN) - yielding 3.2%
CVS Caremark (CVS) - yielding 1.5%
Abbott Labs (ABT) - yielding 3.5%
Northrop Grumman (NOC) - yielding 2.4%
Archer Daniels Midland (ADM) - yielding 32.4%
Becton, Dickinson (BDX) - yielding 2.5%
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