10 blue chips for times of turmoil

These high-quality, dividend-paying stocks offer downside protection and upside potential.

By TheStockAdvisors Nov 27, 2012 11:54AM

Kick Images Photodisc Getty ImagesBy Kelley Wright, Investment Quality Trends

During times of market turmoil, less knowledgeable investors often sell great companies out of fear. This is to our advantage and we should avail ourselves of these opportunities whenever they are presented.

Quality and value have survived everything the market and economy has thrown them and I see no reason for that to change.

We believe our universe of Select Blue Chips is perhaps the finest collection of high-quality companies you will find.

Whether you are familiar with all the ins and outs of a particular company is not necessarily important; knowing when they offer good value on the other hand is vitally important.

We believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.

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 recommendations.

The Timely Ten consists of undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better and show exemplary long-term dividend growth.

The stocks also have a price-to-earnings ratio of 15 or less and technical characteristics on the daily and weekly charts that suggest the potential for imminent capital appreciation.

Our latest Timely Ten selections are:

Chevron Corp. (CVX) -- yielding 3.4%
Coca-Cola (KO) -- yielding 2.8%
McDonald's (MCD) -- yielding 3.6%
United Technologies (UTX) -- yielding 2.8%
CVS Caremark (CVS) -- yielding 1.4%
Air Products & Chemicals (APD) -- yielding 3.2%
Occidental Petroleum (OXY) -- yielding 2.9%
General Dynamics (GD) -- yielding 3.2%
ConocoPhillips (COP) -- yielding 4.8%
Cardinal Health (CAH) -- yielding 2.8%

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2Comments
Nov 27, 2012 1:51PM
avatar

The three most important things to have in a portfolio is:

 

DIVERSITY, DIVERSITY, & DIVERSITY !!!

 

Don't put all your 'apples' into the same basket.

And even with dividend paying stocks, cyclical rises & falls need to be balanced out so that your cash flow remains positive.

Nov 27, 2012 3:48PM
avatar

Yup A Sharp...I agree wholeheartly..

 

One Equity or Sector that I believe is REMISS on their List ....Is TOBACCO...???

I highly suggest they look at the Sector and weigh the Pluses and Minuses.....IMO.

Most that I know, pay better then 5% "on Average" and have been,some of our BEST performers.

 

We have had a couple choices on that list, sold and moved to a similiar better choice...IMO.

But we do "mirror" many of their choices in other Brandings or Names.

Noticeable are no MLPs, LPs or REITS are included, but I think I understand the reasoning why??

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