A Dividend Stock or Two, for Those Who Doubt the Bull

Posted Feb 17th 2010 12:00PM by Joseph Lazzaro
Filed under: AT and T (T), Consolidated Edison (ED), Stocks to Buy

In a normal market, the conventional outlook of investing for capital gains applies. But in a not-so-normal market of today -- a market that moves sideways (or worse) for more than a year -- the conventional strategy is not adequate.

I fully expect the bull market to continue this year after a 10% Dow correction, but for those who hold a different view, here are a few, quality, dividend stocks that also offer modest capital gain potential:

BP Prudhoe Bay Royalty Trust (BPT) -- Recent stock price: $88. Annual dividend: $14.45. Simply, BPT boasts a solid operation.

Con Ed (ED) -- Recent stock price: $42.60. Annual dividend: $2.38. New York, the city that never sleeps, uses a lot of electricity.

AT&T (T) -- Recent stock price: $25.27. Annual dividend: $1.68. The U.S. Department of Defense will run out of money before AT&T does.

Stanley Works (SWK) -- Recent stock price: $54.62. Annual dividend: $1.32. The last time SWK lost money in a year occurred before the Chicago Cubs won their last National League pennant. And as Cub fans will remind you, that was a long time ago.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.

Tags: BPT, ED, SWK, T

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Reader Comments (Page 1 of 1)

2-17-2010 @ 1:14PM

maya said...

I agree with the author that bull market will continue after some kind of correction
http://bit.ly/Stocktrainingvideo
not sure if the correction is 10 percent or little more. I saw prediction of dow going to 8600 at http://bit.ly/DowinTrouble