Abbott is a leading health care products company diversified into pharmaceuticals that include HIV treatment Norvir, rheumatoid arthritis therapy Humira, and obesity drug Meridia; nutritional products; medical devices and diagnostic systems, and eye surgery and care products. Its animal health division offers wound care, nutritional supplements, and IV supplies. Abbott operates in about 130 countries.

This is not a stock that is cheap, but it is probably fairly valued hovering closer to its 52-week low, then its high, closing last Friday at $45.01. Its trailing P/E is 13.73 and its PEG ratio is near 1.0. In searching for strong, long term investments that will let you sleep at night consider that ABT has consistently been able to generate high ROE near 27 while having a puny beta of 0.21, meaning only 20% the volatility of the overall market.

• (Johnson & Johnson (NYSE: JNJ) alternate from Part 1)

Technology: Automatic Data Processing (NYSE: ADP) offers a 3.91% yield and while not strictly a tech stock in the eyes of most people, it makes the most of technology to provide services to large corporate and institutional clients world wide. Like MSFT it has very strong recurring revenue; but unlike most pure tech-stocks, it pays a dividend, which excludes most of the ones I considered. The reductions in employment have hurt it's bottom line but it will be one of the stocks to come roaring back when things turn around. ADP continues the theme of low P/E, at 14, low beta at 0.52 and high ROE at 21. It closed Friday at $33.73.

• (Microsoft (NASDAQ: MSFT) alternate from Part 1)
  

Utility: Duke Energy (NYSE: DUK) offers a 6.42% yield that is supportable and it offers the stability that you want in our current economic storm. It might not be a high flier when the market takes off again, but it will beat most of the market over the long haul. The high yield almost assures that by itself. I have been a strong proponent of the electric utilites over the three years that I have been writing for Bloggingstocks and I still am. Duke is in a growing region of the country, a 0.34 beta, and at a P/B of 0.87 is definitely worth a look. As part of this group it provide more stability. It closed last Friday at $14.32.

• (Southern Company (NYSE: SO) alternate from Part 1)
  

Energy: ConocoPhillips (NYSE: COP) offers a 4.73% yield and has been down with oil prices even after a move upward in the second quarter. I think most of the oil companies are over sold and now is the time to get into diversified major oil players before energy prices pop again. The yield makes the wait all that much easier, and COP's history and cash-flow will support it. The shares have dropped more than 50% in the last year to close at $39.72 last Friday.

• (Chevron Corp. (NYSE: CVX) alternate from Part 1)

Food: Diageo plc (NYSE: DEO) offers a 4.04% yield and as far as stocks are concerned, it is the "stuff dreams are made of". I have written about DEO frequently. Diageo sells eight of the top 20 alcoholic beverages and as such is probably the kind of stock you might pick if you only owned one stock in the universe -- booze is not going out of favor in our lifetime. DEO is one of my solid picks for 2009, has a low P/E near 11 while it has a very high ROE of 41 -- unbelievable considering its low volatility with a beta of 0.73. DEO closed at $56.48 last Friday.

• (General Mills (NYSE: GIS) alternate from Part 1)

As I stated in my first post and I will repeat here because the facts remain the same: "What do these stocks have in common? Popular brands, recognized management, recurring revenue, strong cash flow, dependable dividends, good prospects for future growth, and more. Of course you might think there is nothing novel about this group of stock picks -- and that's the point -- you can get back into the market without losing sleep and make more money than you would be sitting on the sidelines."