Comfort Zone Investing: Five Stocks for 2010

• growing revenues
• strong dividend
• interest rate neutral (or little debt on the books)
• growing profits
• benefits from a recovering economy
• strong balance sheet

Given these criteria as guidelines, these stocks seem attractive for the year ahead.

Coca-Cola (KO) yield of 3.1%; Financial Strength A++; analysts' estimate for annual profit growth for next 5 years: 9%, revenue growth: 4.5%; Company description: KO manufactures, distributes and markets nonalcoholic beverage concentrates and syrups. It also manufactures, distributes and markets finished beverages. The Company's organizational structure consists of the following operating segments: Eurasia and Africa; Europe; Latin America; North America; Pacific; Bottling Investments; and Corporate. Its beverage concentrates and syrups are sold to bottling and canning operations, fountain wholesalers and some fountain retailers, and finished beverages are mainly sold to distributors. The Company owns or licenses nearly 500 brands, including diet and light beverages, waters, enhanced waters, juices and juice drinks, teas, coffees, and energy and sports drinks. In addition, it has ownership interests in numerous beverage joint ventures, bottling and canning operations, although most of these operations are independently-owned and managed.

Colgate Palmolive (CL) yield of 2.2%; Financial Strength A++; analysts' estimate for annual profit growth for next 5 years: 9%, revenue growth: 7.5%; Company description: CL was founded in 1806 and incorporated under the laws of the State of Delaware in 1923. The Company manufactures and markets a number of products in the U.S. and around the world in two distinct business segments: Oral, Personal and Home Care and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, oral rinses and toothbrushes, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, shave products, laundry and dishwashing detergents, fabric conditioners, cleansers and cleaners, bleaches and other similar items. These products are sold mainly to wholesale and retail distributors worldwide. Pet Nutrition products include pet food products manufactured and marketed by Hill's Pet Nutrition. The main customers for Pet Nutrition products are veterinarians and specialty pet retailers.

Johnson & Johnson (JNJ) yield 3.1%; Financial Strength A++; analysts' estimate for annual profit growth for next 5 years: 7.4%, revenue growth: 6%; Company description: JNJ was incorporated in the State of New Jersey in 1887. The Company is engaged in the research and development, manufacture and sale of a range of products in the health care field. It is a holding company which has more than 250 operating companies conducting business in virtually all countries of the world. Johnson & Johnson's operating companies are organized into three business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. The Consumer segment includes a range of products used in the baby care, skin care, oral care, wound care and women's health care fields, as well as nutritional and over-the-counter pharmaceutical products. The Baby Care franchise includes the JOHNSON'S(r) Baby line of products. The Pharmaceutical segment includes products in the following therapeutic areas: anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology. The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers, used mainly in the professional fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics.

Verizon Communications (VZ) yield 5.7%; Financial Strength A+; analysts' estimate for annual profit growth for next 5 years: 6%, revenue growth: 5%; Company description: VZ, formerly known as Bell Atlantic Corporation, was incorporated in 1983 under the laws of the State of Delaware. It began doing business as Verizon Communications on June 30, 2000, when Bell Atlantic Corporation merged with GTE Corporation. The Company is a provider of communications services. It has two reportable segments, Domestic Wireless and Wireline. The domestic wireless business, operating as Verizon Wireless, provides wireless voice and data products and services across the United States using wireless networks. The wireline business provides communications services, including voice, broadband data and video services, network access, nationwide long-distance and other communications products and services, and also owns and operates an end-to-end global Internet Protocol network. Wireline segment includes two strategic units, Verizon Telecom and Verizon Business. Verizon Telecom provides voice, video and data services to residential and small business customers in 28 states and Washington D.C. It operates a Fiber-to-the-Premises network under the FiOS service mark. Verizon Business provides voice, data, Internet communications, next-generation IP network and Information Technology products and services to medium and large businesses and government customers both domestically and internationally. It offers advanced voice, data, security, and wireless solutions to medium and large business and government customers worldwide. The Company completed its merger with MCI, Inc. on January 6, 2006, and its operations are now part of the Company's wireline business. As a result of the Alltel Corporation acquisition on January 9, 2009, Verizon Wireless now serves more than 80 million customers, excluding markets to be divested, making it the largest wireless service provider in the U.S. in terms of the total number of customers.

Wal-Mart Stores Inc. (WMT) yield 2.1%; Financial Strength A++; analysts' estimate for annual profit growth for next 5 years: 11.83%, revenue growth: 8.5%; Company description: WMT was incorporated in Delaware in October 1969. The Company operates Walmart discount stores, supercenters, Neighborhood Markets and Sam's Club locations in the United States. The Company's operations comprise three business segments: Walmart U.S., International and Sam's Club. The Company's Walmart U.S. segment operates stores in three different formats in the United States, as well as Wal-Mart's online retail operations, walmart.com. The Company's Walmart U.S. retail formats include: Discount stores, which average approximately 108,000 square feet in size and offer an assortment of general merchandise and a limited variety of food products; Supercenters, which average approximately 186,000 square feet in size offer an assortment of general merchandise and a full-line supermarket; and Neighborhood Markets, which average approximately 42,000 square feet in size offer a full-line supermarket and a limited assortment of general merchandise. The Walmart U.S. segment also offers financial services and products, including money orders, wire transfers, check cashing and bill payment.

The Company's Sam's Club segment consists of membership warehouse clubs in the United States and the segment's online retail operations, samsclub.com. The Company's Sam's Clubs average approximately 133,000 square feet in size. Sam's Club offers bulk displays of brand name merchandise, including hard goods, some soft goods, institutional-size grocery items, and selected private-label items under the "MEMBER'S MARK," "BAKERS & CHEFS" and "SAM'S CLUB" brands in five categories within the warehouse club format. The International segment includes numerous different formats of retail stores and restaurants, including discount stores,supercenters and Sam's Clubs that operate outside the United States. The Company's International segment is comprised of its wholly-owned subsidiaries operating in Argentina, Brazil, Canada, Japan, Puerto Rico and the United Kingdom, its majority-owned subsidiaries operating in five countries in Central America, and in Chile and Mexico, its joint ventures in India and China and its other controlled subsidiaries in China.

These are familiar names to most investors, large stocks with plenty of brand recognition. They're also diversified, each representing a very different segment of the economy. Of course, they're not for everyone. Higher risk investors won't like them because they're too safe. Income investors may want more yield than these generate. But many investors should find these picks of interest and worthy of more research as they look for stocks for the coming year.

These may not be the best performers by next December, but they will certainly not be the worst. They represent a solid middle ground where most investors should find comfort.

Ted Allrich is the founder of The Online Investor, chairman of the board of Bank of Internet USA, as well as the author of the book Comfort Zone Investing: Build Wealth and Sleep Well at Night. In this weekly column, he'll offer advice to investors who are just getting started.