With current tough times, and maybe getting tougher with deflation as a real possibility, investors who think more defensively may see better returns with more conservative stocks, ones with dividends and solid balance sheets. Now isn't the time to be too aggressive. With that in mind, here are five stocks that made our column dedicated to conservative investors.

Avista Corp. (AVA): an energy company, engaged in the generation, transmission, and distribution of energy and energy-related businesses in the United States and Canada. The company operates through two segments, Avista Utilities and Advantage IQ.

Continue reading Comfort Zone Investing: Five Defensive Stocks

Comfort Zone Investing: Five Defensive Stocks originally appeared on BloggingStocks on Sat, 14 Aug 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Coca-Cola: You've Got to Look at This One

Coca-Cola: You've Got to Look at This One originally appeared on BloggingStocks on Mon, 07 Jun 2010 16:30:00 EST. Please see our terms for use of feeds.

Continue reading Hormel Down on Q2 News

Hormel Down on Q2 News originally appeared on BloggingStocks on Wed, 19 May 2010 15:30:00 EST. Please see our terms for use of feeds.

Coca-Cola (KO - option chain) shares are in the green today while most other stocks are seeing red for the second consecutive session. Traders could be moving into defensive-minded stocks due to concerns that the overall market might finally have an extended slump. The thought is that companies like Coca-Cola, whose products are less cyclical, will be steady safe havens if the markets correct. Plus, the sizable dividend will provide returns even if the stock merely stalls flat.

If you think that the stock won't fall by too much in the coming months as investors scurry to defensive stocks, then now could be a good time to look at a bullish hedged trade on KO.

Continue reading Is Coca-Cola the Defensive Stock You Want?

Is Coca-Cola the Defensive Stock You Want? originally appeared on BloggingStocks on Wed, 05 May 2010 13:00:00 EST. Please see our terms for use of feeds.

In Gordon Pape's Internet Wealth Builder, contributing analyst Tom Slee looks at "recession-resistant" global stocks. Here, he reviews Philip Morris International (NYSE: PM) and PepsiCo (NYSE: PEP).

Slee explains, "Philip Morris continues to benefit from rising tobacco consumption and 'uptrading' as people in the emerging countries switch to more expensive products.

"Almost recession proof, the international tobacco industry is prospering thanks mainly to new markets, strong cash flows, and reduced litigation.

Continue reading Play defense with PepsiCo (PEP) and Phillip Morris Int'l (PM)

Play defense with PepsiCo (PEP) and Phillip Morris Int'l (PM) originally appeared on BloggingStocks on Wed, 28 Oct 2009 11:10:00 EST. Please see our terms for use of feeds.

Del Monte Foods (NYSE: DLM), a supermarket brand whose colleagues include ConAgra (NYSE: CAG) and Kraft (NYSE: KFT), was way up in afternoon trading. When a stock like Del Monte gains 9% on great volume, you know something big must have happened. Well, it was the company's fiscal Q1 results that made investors want to buy today. After checking over the news, I can honestly say that I see the market's point.

Sales increased 12% during the quarter, and earnings from continuing operations calculated out to 30 cents per share, a huge improvement over the loss observed in the comparable period. According to Earnings.com, Wall Street was only looking for a measly four pennies for the bottom line.

Continue reading Del Monte up big on Q1 data

Del Monte up big on Q1 data originally appeared on BloggingStocks on Thu, 03 Sep 2009 15:00:00 EST. Please see our terms for use of feeds.

In a difficult economic environment, it is often wise for investors to consider stocks in more defensive and relatively recession-resistant sectors. And one such area is food and beverage stocks.

As the long-standing market maxim goes, consumers can pull back on spending for vacations, remodeling, and new cars, but they still need to eat and drink.

In that light, I turned to nine leading newsletter advisors who serve up their current favorite ideas in the food and beverage sector:

Continue reading Food for thought: Best buys in food & beverage

Food for thought: Best buys in food & beverage originally appeared on BloggingStocks on Fri, 24 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Kellogg is a defensive play with growth potential

Kellogg is a defensive play with growth potential originally appeared on BloggingStocks on Thu, 16 Apr 2009 12:40:00 EST. Please see our terms for use of feeds.

Continue reading Just call Colgate-Palmolive an assertive defensive play

Just call Colgate-Palmolive an assertive defensive play originally appeared on BloggingStocks on Mon, 13 Apr 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading General Mills profits as more Americans eat at home

General Mills profits as more Americans eat at home originally appeared on BloggingStocks on Wed, 08 Apr 2009 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Consider FPL Group, because the Gold Coast is still there, recession and all

Consider FPL Group, because the Gold Coast is still there, recession and all originally appeared on BloggingStocks on Tue, 03 Mar 2009 18:20:00 EST. Please see our terms for use of feeds.

Continue reading Booze Stocks: Drinkers cutting back. Will stocks follow?

Booze Stocks: Drinkers cutting back. Will stocks follow? originally appeared on BloggingStocks on Wed, 25 Feb 2009 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Walgreen (WAG) expands the old-fashioned way: carefully

Walgreen (WAG) expands the old-fashioned way: carefully originally appeared on BloggingStocks on Tue, 17 Feb 2009 10:45:00 EST. Please see our terms for use of feeds.

As drug store chains go, there are few better than CVS Caremark, with the chain taking the CVS name. Further, with the U.S. recession in its 15th month and shares doing their best to form a bottom, now is the time to scoop up CVS's shares, for several reasons.

First, CVS (NYSE: CVS) is a classic defensive stock. During recessions, and especially during this recession, consumers cut back spending, but they do their best to maintain essential purchases, and prescriptions are one such purchase. That bodes well for what analysts call "back store revenue" (the pharmacy).

Continue reading CVS knows that a doctor's handwriting is a code for earnings

CVS knows that a doctor's handwriting is a code for earnings originally appeared on BloggingStocks on Mon, 16 Feb 2009 11:00:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"To paraphrase its marketing slogan: 'Nobody shouldn't like Sara Lee (NYSE: SLE),'" says Steve Ralston, consumer products sector expert at Zacks Investment Research.

"From the sales of staple products, consumer non-durable companies generate solid cash flow, with which management can enhance shareholder value through share repurchases and dividend increases.

"Recently restructured consumer non-durable companies are especially attractive, particularly if they are well-managed, trade at a single-digit P/E, and yield more than 4%.

"My favorite stock for 2009 is Sara Lee. Sara Lee announced a 5-year restructuring plan (the Transformation Plan) 3-1/2 years ago. The company has been right-sized, having divested unprofitable and low margin businesses.

Continue reading Top Stock Picks '09: Sara Lee (SLE)

Top Stock Picks '09: Sara Lee (SLE) originally appeared on BloggingStocks on Sun, 04 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

The Wall Street Journal argues that the stock market drop may have killed so many sectors that "defensive stocks" may have disappeared. In many market corrections, there are some companies with shares that have held up because their business are less likely to be hurt by a recession.

The paper says that "a number of defensive stocks lately are acting more like cyclical names." The analysts points to companies such as PepsiCo (NYSE:PEP) and Johnson & Johnson (NYSE:JNJ).

The viewpoint may be flawed. What may have happened is that there has been a rotation out of stocks that used to do well in bear markets to a new set of shares which have held up well.. Over the last year, shares of Wal-Mart (NYSE:WMT) are up over 20%. Shares in Colgate (NYSE:CL) are only off a little over 10%, but the company pays a 2.3% dividend. Shares in Genentech (NYSE:DNA) are up 20%. Granted, it is a takeover target, but it has been considered one for some time.

Maybe The Wall Street Journal is just looking in the wrong places.

Douglas A. McIntyre is an editor at 247wallst.com.

The end of the run for "safe harbor" stocks (JNJ) (PEP) (WMT) (CL) (DNA) originally appeared on BloggingStocks on Mon, 29 Dec 2008 10:00:00 EST. Please see our terms for use of feeds.

It's a slow week on Wall Street. But after the year we've had (for a great read, check out Markets Gone Wild: 10 Craziest Days on Wall Street in 2008), that's a welcome change.

However, there are some individual stories worth noting. One in particular that caught my eye was the action in Walgreen Co. (NYSE: WAG).

Before the opening bell on Monday, the giant drug store announced earnings that missed expectations.

Investors were not pleased and shared immediately sold off. By the end of the day, shares had shed another dollar of value. The bleeding continued on Tuesday with another dollar lost. Shares closed Wednesday at just over $24.

While it may have been a good week to announce negative news, WAG could not escape the wrath of the sell-first-ask-questions-later crowd.

Does this make any sense?

Not to me.

Walgreen announced that it made $408 million, or 41 cents per share, in its first quarter of fiscal year 2009, ending Nov. 30. Analysts were expecting 46 cents per share.

The miss continues a trend of slower profit growth for what had been one of the more consistent companies in the S&P 500 index.

I guess that explains the disappointment over the earnings miss, but I find the reaction a bit ridiculous.

The economy is in a world of hurt, so it should have been no surprise that even a dependable earnings machine like WAG would have trouble.

The sell-off is your opportunity, in my opinion. There are plenty of great long-term reasons to own the stock.

For starters, in a poor economic environment, WAG can be counted as a defensive play. That status does not change due to a 5-cent miss on earnings.

The company is profitable and has a solid balance sheet with $400 million in cash and just over $1 billion of debt. They pay a nice dividend of just under 2% that investors should be able to count on while we wait for the economy to find its footing.

Like every other stock in the market, WAG has seen its share price drop during the last year. That said, the stock has fared better than some, having only lost about 38% of its value.

With many questions remaining about the economy, I would much prefer owning WAG than some other names with greater risk.

The company did announce that it was reducing store openings for the coming year, focusing on cutting costs and redesigning stores in order to increase grocery items for busy shoppers.

The later strategy makes a lot of sense if you think about what is working for other retailers, like Wal-Mart (NYSE: WMT), or gasoline convenience stores like Casey's General Store (NASDAQ: CASY).

Filling a prescription is no different than filling the gas tank. If a customer can pick up a gallon of milk and some other items while waiting for a prescription to be filled, WAG will benefit by offering more choices.

WAG makes a ton of sense as a defensive play, and I would consider it a buy.

Jamie Dlugosch is a contributor to OptionsZone.com.

Walgreen (WAG): Get this great defensive play cheap originally appeared on BloggingStocks on Fri, 26 Dec 2008 12:30:00 EST. Please see our terms for use of feeds.

Continue reading If you must: a defensive play or two

If you must: a defensive play or two originally appeared on BloggingStocks on Wed, 24 Dec 2008 17:30:00 EST. Please see our terms for use of feeds.

"While many firms are struggling to survive, a lucky minority are built to weather the storm better," says growth stock specialist Karim Rahemtulla. In Xcelerated Profits Report, he eyes Costco Wholesale (NASDAQ: COST).

"Thanks to rising inflation and unemployment, coupled with a beaten-up economy, many retailers are braced for a harsh new reality this holiday season.

"Consumers have much tighter budgets and are cutting back on whatever they can. And that's where some 'one-stop' retailers like Costco can really take advantage.

"Although customers are more likely to avoid the electronics and other non-necessity stocking sections of the store these days, they still need to eat.

"So while other non-food departments are seeing a sales slowdown, Goldman Sachs recently reported that Costco is likely to enjoy strong food sales, which offset that.

"Goldman also noted that Costco boasts a strong balance sheet, with almost $3.3 billion in cash on the books, plus ample liquidity - factors that could encourage management to implement a stock buyback program.

"Compared to other retailers who are flat-out dreading this holiday season, that puts Costco in a strong position.

"And because the store has such a diverse range of products, all under one roof and available at bargain prices, Costco is one firm better prepared to ride out what could be a brutal season for retailers."

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.

Costco (COST): Built to 'weather the storm' originally appeared on BloggingStocks on Fri, 28 Nov 2008 15:15:00 EST. Please see our terms for use of feeds.

"Even in tough economic times, Sara Lee (NYSE: SLE) should fair well thanks to its offering of non-cyclical goods," says quantitative analyst Vahan Janjigian, editor of The Forbes Growth Investor.

"Sara Lee is a leading producer of branded foods, beverages, and personal care products. Roughly 50% of sales are generated outside of the U.S. Leading brands include Ball Park, Hillshire Farm, Jimmy Dean, Sara Lee, State Fair, Earth Grains, and Senseo brand coffee products.

"Management launched a comprehensive restructuring plan in 2005 to focus on core products and maximize operating efficiencies. These actions yielded $218 million in annualized cost savings in fiscal 2008.

"Food commodity costs soared earlier this year. However, SLE has been able to pass costs to customers through price increases. Furthermore, it has benefited from growing volumes. Fiscal Q4 net sales grew 12.2% year-over-year to $3.5 billion.

"With its earnings announcement, management issued fiscal 2009 guidance. It expects net sales to grow 4-6% year-over-year to $13.7-14 billion and pro forma earnings to grow 8-18% to 90-98 cents per share.

"Since issuing guidance, economic conditions have deteriorated significantly. This could lead to increased trading down activity to lower-priced brands or private-label goods.

"Also, the strengthening dollar has turned the foreign exchange tailwind into a headwind. Yet food commodity and energy costs have fallen significantly, which could provide margin relief for the company."

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.

Sara Lee (SLE): A buy for tough times originally appeared on BloggingStocks on Thu, 20 Nov 2008 10:55:00 EST. Please see our terms for use of feeds.