10 favorite blue-chip income stocks
These picks earn top ratings for long-term growth, dividends, quality and value.
We believe that high-quality stocks purchased at historically low-prices with high yields offer the best potential for downside protection and upside appreciation.
Our Timely Ten list represents represents our top ten current recommendations. It is our reasoned expectation based on our methodology and experience that these companies will perform well 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 current undervalued levels, are well positioned for both growth of capital and income.
The Timely Ten consists of undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, exemplary long-term dividend growth, and a P/E ratio of 15 or less.
These positions also have a payout ratio of 50% or less, debt of 50% or less and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.
The current selections are:
Chevron Corp. (CVX) -- yielding 3.4%
Johnson & Johnson (JNJ) -- yielding 3.6%
Exxon Mobil (XOM) -- yielding 2.7%
CVS Caremark (CVS) -- yielding 1.4%
Eaton Corp. (ETN) -- yielding 4.1%
Air Products & Chemicals (APD) -- yielding 3.3%
Occidental Petroleum (OXY) -- yielding 2.6%
General Dynamics (GD) -- yielding 3.2%
Emerson Electric (EMR) -- yielding 3.6%
United Technologies (UTX) -- yielding 3.0%
In our view, investors should limit their investment considerations to high-quality companies that offer good value, holding those positions until their full value is realized, then rolling the proceeds into another undervalue opportunity.
The ride may be bumpy at times and you may have to endure some white knuckle moments. So be it; it is part of the investing equation.
At the end of the day, though, you should realize a consistent growth of both capital and income, which, after all, is the sole reason why we invest.
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Technology and small caps should be attractive to investors worried about fixed income.
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