Blue Chip Buys: The Timely Ten
Wednesday, July 14, 2010
by Kelley Wright, editor IQ 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 that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation.
For investors to effectively mirror our Model Portfolio would require holding one hundred forty nine stocks -- clearly too many positions to be practical.
The Timely Ten, therefore, 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 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.
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 as of each issue.
The Timely Ten consists of Undervalued stocks that generally have a S&P Dividend & Earnings Quality rating of A- or better, and a "growth" designation for exemplary long-term dividend growth.
We also screen for 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 current Timely 10 selections are:
Johnson & Johnson (NYSE: JNJ) - yield 3.7%
Chevron (NYSE: CVX) - yield 4.2%
Exxon Mobil (NYSE: XOM) - yield 3.1%
Philp Morris Int'l (NYSE: PM) - yield 5.1%
Coca Cola Co. (NYSE: KO) - yield 3.5%
Procter & Gamble (NYSE: PG) - yield 3.2%
PepsiCo (NYSE: PEP) - yield 3.1%
McDonald's (NYSE: MCD) - yield 3.3%
Abbott Labs (NYSE: ABT) - yield 3.8%
Automatic Data Processing (NASDAQ: ADP) - yield 3.4% |
