Wal-Mart: An 'easy hold' stock

"'Easy hold' stocks have strong finances, consistent sales and earnings and moderate volatility; one such stock is Wal-Mart Stores (NYSE: WMT)," says Chuck Carlson in The DRIP Investor.

"Easy hold stocks are 'easy holds' for good reason -- their price action generally does not force you to make too many decisions about selling. And one that has held up quite well of late is Wal-Mart, the world's largest retailer.

"The firm's discount focus has been especially popular with consumers in recent months in light of the sluggish economy and job markets. The firm has beaten earnings estimates in each of the last four quarters. Record profits of $3.50 per share are expected for the current fiscal year ending January 2009.

"Long term, I expect Wal-Mart to provide the sort of steady sales and profit growth that will keep its stock trending higher.

"While I would not expect Wal-Mart to keep pace during the next big upward move in the market, I think the consistency of returns the stock will show over the next several years should be rewarding for investors looking for acceptable returns at moderate risk levels.

"Wal-Mart also offers a direct-purchase plan whereby any investor may buy shares directly, the first share and every share. Minimum initial investment is $250. However, Wal-Mart will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $25."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.