​10 Top Blue-Chip Dividend Buys

MoneyShow  |


We assess a significant amount of fundamental and technical information and data on high-quality, dividend-paying Blue Chip stocks, asserts value investing expert Kelley Wright, editor Investment Quality Trends.

The degree to which this information and data are utilized by investors depends on their experience, sophistication and level of portfolio building expertise.

Because we follow such a wide variety of companies that are dynamically moving in price, along with a steady influx of new subscribers, we do not construct and maintain model portfolios as it is impractical, if not impossible, to construct and maintain model portfolios to meet every investor's individual investment objectives.

Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or are fully invested and merely in need of some affirmation and hand holding, our The Timely Ten represents our top ten recommendations from the Undervalued category as of each issue.

Traditionally we have suggested the following criterions for investors to consider in their investment considerations:

• An S&P Dividends and Earnings Quality Ranking of A- or better
• A growth designation for outstanding long-term annual dividend growth of 10% over the last twelve years
• A price/earnings ratio (P/E) of 15 or less
• A payout ratio (percentage of earnings paid out as a dividend) of 50% or less (75% for Utilities)
• A debt level of 50% or less (75% for Utilities)

Historically, investors that have relied solely on these criterions in their stock selection process have been handsomely rewarded over time.

The only critique is that some stocks remain in the Undervalued area for a significant amount of time before they begin to demonstrate price appreciation. Here are our current Timely Ten:

Franklin Resources (BEN) — yielding 3.26%
Omnicom Group (OMC) — yielding 2.33%
CVS Health (CVS) — yielding 2.93%
International Business Machines (IBM) — yielding 3.77%
Wal Mart (WMT) — yielding 2.36%
Lowe's Companies (LOW) — yielding 1.90%
Cracker Barrel (CBRL) — yielding 2.93%
Public Storage (PSA) — yielding 4.05%
Hershey (HSY) — yielding 2.58%
Walt Disney (DIS) — yielding 1.62%.

Kelley Wright is managing editor of Investment Quality Trends.

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About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BEN Franklin Resources Inc. 27.17 0.13 0.46 553,526 Trade
OMC Omnicom Group Inc. 77.26 -0.19 -0.25 309,943 Trade
LOW Lowe's Companies Inc. 107.50 9.63 9.84 10,886,716 Trade
PSA Public Storage 262.44 1.90 0.73 163,413 Trade
HSY The Hershey Company 158.03 1.55 0.99 226,036 Trade
CVS CVS Health Corporation 62.10 0.54 0.88 2,756,348 Trade
CBRL Cracker Barrel Old Country Store Inc. 164.92 -0.41 -0.25 65,550 Trade
WMT Walmart Inc. 112.16 0.11 0.10 2,771,464 Trade
IBM International Business Machines Corporation 134.79 1.79 1.35 1,427,470 Trade
DIS The Walt Disney Company 135.83 0.70 0.52 2,815,921 Trade

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