Friday, August 21, 2009

Safe Stocks for the Long Haul

In the interest of full disclosure I'm not legally certified to be giving out stock advice, but it's the Internet, why not? I did work at UBS for a semester in school and have been playing the market for 13 years. I'm not sure what shape this posting will take each week but I'll focus on upcoming IPO's I know for sure and give out general investing advice. Today I picked a few for the long term.

The best stock search program on the net is Kiplinger's stock finder program. It allows you to search up to 10 criteria including PE ratio, rolling earnings, dividends, and so much more for every stock out there. If you have the time to "play" on it you probably don't have much use for a broker except to let you know about newer companies. Today, I punched into Kiplinger looking for the following criteria:

Dividend greater than 3%
5 year annualized return more than 10%
Consecutive years of earnings growth greater than 5

and I found a whopping 3 companies

Chevron (CVX) - 4% dividend, 11% annual return, and 6 years of earnings growth
oil baby its a neverending cash cow and with that dividend it'll pay you to keep it that way

Darden Restaurants (DRI) - 3.1% dividend, 12% annual return and 12 years of earnings growth
Red Lobster, Oliver Garden, Longhorn Steakhouse and more plus they support UCF

NSTAR (NST) - 4.7% dividend, 10% annual return and 7 years of earnings growth
MA based energy company that you've probably never heard of, good work Sox fans