Stocks are up this year but not everyone is profiting. One reason is that many investors, stung by the market collapse, have been looking for safety by investing in dividend paying stocks. But Richard Moroney, editor of Dow Theory Forecasts, says that investing for yield is a flawed strategy.

Moroney, a chartered financial analyst, points out that while the S&P 1500 Index is up about 16% so far this year, investors in high-yielding stocks (with yields of 4% or more) have a year-to-date return of just 4%. And he says that stocks that do not pay dividends are up an average of 29%.

We spoke with Richard Moroney to find out why this is the case -- and what income investors should do.

"In recent months, DirecTV (NASDAQ: DTV) has shown that pay television is recession-resistant; indeed, the company has been dishing up subscriber growth," says Richard Moroney.

In his Dow Theory Forecasts, the advisor explains why the satellite-TV system operator is among those select stocks consider to be "Focus List" buys -- the top long-term buy rating in their model portfolio.

"In the nearly 15 years since DirecTV sold its first satellite-television system, the company has grown to serve more than 18 million U.S. subscribers, or 16% of the country's households. DirecTV also operates in Latin America, where it generates 12% of revenue.

This post is part of a 12-article feature on the best bets for investing in China. To see all the other recommendations in this special report, click here.

"The rollout of China's 3-G cell-phone network offers huge potential for Qualcomm (NASDAQ: QCOM)," suggests Richard Moroney in the blue chip advisory, Dow Theory Forecasts.

"Third-generation networks offer higher download speeds for phones that browse the Internet and download songs and movies.

"We see smooth seas ahead for deepsea driller Oceaneering International (NYSE: OII)," says Richard Moroney.

The editor of the blue chip advisory, Dow Theory Forecasts, explains, "Most of the world's untapped oil reserves lie under the ocean floor, and oil producers are spending an increasing portion of their capital budgets on deepwater drilling."

"While oil prices don't directly affect Oceaneering International's profits and cash flows, they do move the stock. Oil prices fell by two-thirds in the second half of 2008, pushing Oceaneering shares under $20 for the first time since July 2005.

"Long-time healthcare investors can be forgiven their confusion; drug stocks are supposed to be defensive, but many of the largest drugmakers have been pounded," observes Richard Moroney.

Nevertheless, in the blue chip Dow Theory Forecasts, the advisor sees two favorite healthcare and pharmaceutical issues as long-term opportunities: AstraZeneca (NYSE: AZN) and Johnson & Johnson (NYSE: JNJ).

Moroney explains, "Healthcare companies' profits are supposed to remain fairly steady regardless of the economic situation. But hospitals' capital spending fell in the December quarter, and many consumers are putting off medical care because they cannot afford it.

"What's going on with Transocean (NYSE RIG), the owner of the world's biggest fleet of offshore drilling rigs?" asks Richard Moroney, a specialist in blue chip stocks.

In his Dow Theory Forecasts, he explains, "The shares plunged 67% - nearly $100 a share - in 2008, and we can't blame the usual suspects." Here, he explains why he continues to rate thes stock a "Focus List Buy" in his blue chip-focused advisory service.

"Poor operating performance? Wall Street expects 2008 per-share profits of $14.34, up 68%. Shaky future? Transocean is expected to grow per-share earnings 4% in 2009 and 10% annually over the next five years.

"Fundamentals eroding? Not at all. The balance sheet is sturdy and the backlog stout at $41 billion, or three times expected 2009 revenue. Rather, we see two chief contributors to Transocean's steep slide, and neither should jeopardize long-term prospects.

I'd like to make a comment on the "Dow Theory" today: Since there were several write-ups circulating Tuesday about a new "bear-market signal" given by the theory on Monday, it is worth addressing.

Some analysts were all atwitter, saying that Monday's close on the Dow Jones Industrial Average and the Dow Transports broke under the January lows. Thus, they said, a new Dow sell signal was triggered.

The theory states that if a double confirmation occurs, (i.e., that if two of the three Dow averages make a new high or low) then a trend is confirmed.

Well, the Transportation Average did fall below both its January and November intra-day low and closing low. (I mention January only because one report said that it is relevant -- but it actually has no significance at all.) And the Industrial Average did break the closing low of January -- but that is irrelevant, since the market's lows were made in November.

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.

"Biogen Idec (NASDAQ: BIIB) -- which has a highly effective though risky treatment for multiple sclerosis called Tysabri -- is our top pick for 2009," says analyst Richard Moroney.

The editor of Dow Theory Forecasts, an advisory that has been published for more than 50 years, explains, "Despite superior growth prospects, the Tysabri concerns have kept Biogen's shares under pressure.

"In the past two months, consensus profit estimates have crept upwards for Biogen Idec. Per-share profits are expected to climb 33% in 2008 and 9% in 2009. Over the next five years, profits are expected to climb 12% annually. Two factors support this outlook.

"First, Biogen plows nearly a third of its revenue into research and development, raising expectations of a fertile lineup of new drugs. Second, there's Tysabri, a highly effective though risky treatment for multiple sclerosis.

"Investors should keep a defensive posture," says Richard Moroney. However, the editor of the blue chip advisory service, Dow Theory Forecasts, see opportunity in two drug stocks that he has just added to his buy list.

"In general, we prefer to let the market's action signal that the point of maximum pessimism has passed before deploying our cash reserves. But we intend to remain engaged, looking for stocks capable of bucking the bearish trend.

"Biogen Idec (NASDAQ: BIIB) produces biotechnology drugs that treat non-Hodgkin's lymphoma and multiple sclerosis. Per-share profits jumped 69% and operating cash flow surged 71% in the September quarter.

"Wall Street expects per-share-profit growth of 9% in 2009 and 7% in 2010, but good news on Biogen's most-promising drug could render those targets conservative.

"At 12 times estimated 2009 earnings, Biogen shares are the cheapest of the six largest U.S. biotech stocks. Biogen is being initiated as a Focus List Buy and a Long-Term Buy.

"AstraZeneca (NYSE: AZN) is being added to the Buy List. The British drugmaker offers an intriguing blend of value and growth potential. A study released this month showed that the company's cholesterol drug Crestor reduced the risk of various heart problems by 44%.

"The study could potentially expand Crestor's addressable market to include millions of new patients, though AstraZeneca is soft-pedaling the potential benefits. AstraZeneca, which earns a Quadrix Overall score of 94 and yields 4.5%, is being added to the Buy List."

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.

This post is part of a report entitled "Six-pack of technology favorites." You can read about the other top tech stock picks here.

"For more than a decade, International Business Machines (NYSE: IBM) lived up to its reputation as a slow-growing, stodgy company," says Richard Moroney.

The editor of the blue chip advisory, Dow Theory Forecasts, contends, "But over the last 12 months, the picture changed. Strong operating momentum is now propelling genuine operational growth despite U.S. economic weakness."

"Acquisitions and cost cuts have accounted for most of IBM's growth in recent years. In the 10 years ended 2006, sales increased at an annualized rate of less than 2%, and the company lost both market share and in?uence.

"However, sales growth has accelerated in each of the last three quarters, and per-share pro?ts have risen at least 23% in each period. Consensus estimates, trending upward over the last month, project per-share-pro?t growth of 24% in 2008 and 11% in 2009.

"A broad business mix has helped the company keep growing during the economic slowdown. IBM may still be best known for its hardware, but the company's strength over the last year has stemmed from the services and software businesses, which tend to be less economically sensitive than hardware.

"Hardware accounted for about 18% of sales in the six months ended June, while services represented 58% and software generated 20%. Financing operations brought in most of the last 4%.

"While the current economic climate has pinched the consumer, companies are still investing heavily in new technology. IBM's products and services help customers improve ef?ciency, productivity, and security, which in turn can reduce costs. In the six months ended June, IBM's revenue rose 12%, while per share-pro?ts jumped 34%. Revenue from services increased 17% in the six-month period.

With concerns over recession, turmoil in the financial sector, fear of rising rates, high market volatility and a rising aversion to risk, many investors have been avoiding technology stocks.

Investors have feared that these economic headwinds will dampen both consumer spending for technology products and reduced capital expenditures for technology in the corporate sector.

Despite these concerns, some of the newsletter industry's leading advisors are looking beyond the current malaise and seeing longer-term value in some of the tech sector's leading players. They believe that much of the "bad news" is already reflected in the price of the shares, with little recognition being given to their longer-term potential.

For those willing to go against the crowd and buy, as they say, "while blood is running in the street," we offer a six-pack of technology stocks that the some top advisors considers to be among their favorite ideas.

"Partial insulation from the economic slowdown, coupled with new military-aircraft programs, give Lockheed Martin (NYSE: LMT) attractive capital-gains potential over the next several years," says Richard Moroney.

In his blue chip oriented Dow Theory Forecasts, the advisor explains, "A diversified business mix provides investors a measure of safety in a dif?cult economic climate. The stock is a Focus List Buy."

"Lockheed seems well-positioned with regards to the U.S. defense budget, with very little exposure to Iraq. The company is capable of growing pro? ts even if the new U.S. president pulls troops out of the country.

"While defense-spending growth is likely to slow in coming years, ongoing security threats and the need to replace aging equipment should keep the baseline defense budget, which excludes war-related costs, growing through at least 2012.

"A diversified business mix provides investors a measure of safety in a dif?cult economic climate. After the Air Force, Lockheed's next-largest end market is civil government and homeland security, accounting for 26% of revenue.

"The U.S. Navy accounts for 20% of sales and the Army 10%. About 13% of sales are international, and the U.S. communications industry accounts for 3%.

"For investors who seek superior relative performance but are unwilling to sacrifice dependability, the we offer four funds that consistently outperform their peers," says Richard Moroney.

In the mid-year forecast for his Dow Theory Forecasts, he explains, "All of these funds have outpaced category averages in each of last five years, and sometimes much longer." Here, he looks at those funds that he considers "perennial winners."

"To be sure, past returns do not guarantee future success. But, while the evidence is not conclusive, academic studies generally indicate performance tends to persist, particularly at the extremes. That is, the best funds continue to outperform their peers, while the worst funds keep lagging.

"Fidelity Export & Multinational (FEXPX), our favorite pick among large-company growth funds, is riding an impressive nine-year winning streak - the longest in its category. Among the more than 1,800 large-cap growth funds, less than 80, or roughly 4%, have outperformed the peer-group average for five straight years.

In its mid-year forecast, Dow Theory Forecasts -- which has been published for 5 decades -- features its top current picks, including IBM (NYSE: IBM), which earns its top designation as a "Focus List Buy."

Editor Richard Moroney explains, "IBM has repeatedly forecast its goal of per-share earnings of $10 to $11 in 2010. The company is well on its way to achieving that goal. Software, in particular, is key to IBM's earnings target.

"The company completed its acquisition of Telelogic in April, three months after purchasing Cognos. IBM expects acquisitions to contribute 3% of its goal of 7% to 10% growth in software sales.

"From 2002 to 2007, mainframe sales averaged 6% growth, but sales fell in three of those years, including 2007. The March quarter showed no improvement, as sales in the division fell 7%. But, with energy prices up, IBM sees an opportunity with its new, energy-efficient Z-series mainframe.

"Server sales have been spotty, but IBM's sales force translates server revenue into two to three times as much in software and systems revenue. IBM, with the potential to reach $155 to $165 over the next 12 months, is a Focus List Buy and a Long-Term Buy."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

"Uncertainty about the legal disputes has weighed on Qualcomm (NASDAQ: QCOM)," says Richard Moroney, who rates the stock a long-term buy. The editor of Dow Theory Forecasts explains, "Though the court case may distract investors, Qualcomm's long-term fundamentals appear solid." Here's his bullish outlook.

"The company is embroiled in disputes over royalty fees paid for use of its patents, particularly by one of its largest customers, Nokia. In March, the combatants agreed to consolidate a host of lawsuits into one case to be heard later this year and likely to be decided by year's end.

"Barring a disastrous court loss, which seems unlikely, Qualcomm shares should benefit. Any resolution will reduce uncertainty. By the end of this year, Qualcomm should be able to jettison some of the baggage holding back its stock.

"While the U.S. economic slowdown has sparked fears of a decline in demand for microchips, Qualcomm should benefit as cell-phone users worldwide transition to third-generation technology, which allows for faster downloading of video, music and other data.