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.

"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

"If you're going to stay invested, you should look to defensive sectors," explain Ron Rowland and Brandon Clay, who point to consumer staples as a top pick for the current market environment.

In their Invest with an Edge, the advisors explain, "Perhaps the best way to stay defensive is with the Consumer Staples Select Sector SPDR (NYSE: XLP), an exchange traded fund.

"In a bear market, opportunities are usually limited to certain sectors. Surveying the investment horizon, we think the consumer staples sector has the best opportunity for growth in this economy.

"Regardless how the economy acts, people still eat. Consumers may not shop at Whole Foods, but they'll still buy groceries. Companies like Wal-Mart (NYSE: WMT) and Safeway (NYSE: SWY) will continue to rake in revenues from hungry customers.

"In addition, these companies should continue to receive additional revenue from consumers who normally shop at specialty stores, but can no longer afford to.

"Consumers may not be shopping at Sharper Image any more, but there are other creature comforts that will be difficult for Americans to abandon.

"Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) will still sell products during a prolonged downturn. In addition, companies providing toiletries and convenience like Procter and Gamble and CVS Pharmacy stand to do well during a shifty economy.

"Philip Morris International (NYSE: PMI) remains a buy, despite these difficult markets," says Tom Slee in Gordon Pape's Internet Wealth Builder. Here he reviews the global tobacco firm.

"Spun off from the Altria Group earlier this year, Philip Morris International is off to a flying start.

"The company posted strong second-quarter earnings. After a special charge for its Rothmans acquisition, earnings came in at 81 cents a share, up from 69 cents a share the year before.

"The company had been reporting as a clearly defined division of Altria so it's possible to make comparisons and plot progress.

"Gross revenues rose 17.6% to $15.6 billion with double-digit growth in all business segments, helped to some extent by currency benefits. Sales were particularly strong in Egypt, Russia, and Argentina.

"At the same time, the company is engaged in an extensive cost reduction program. It's a positive picture and PM rewarded investors with a 17% dividend increase from $1.84 to $2.16 a year.

"This is what I had been hoping for. Management is willing to share the wealth with investors and this could become one of the few defensive income stocks with growth potential, as long as you don't mind investing in a cigarette manufacturer.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"The market is looking increasingly fragile -- and our top pick for 2008 is a stellar investment that has all the makings of a bear-market killer: The Vice Fund (VICEX)," says Eric Roseman, editor of Commodity Trend Alert.

"This fund will do well as long as people continue to drink, smoke and gamble. The fund might not be the most wholesome investment in your portfolio, but it sure earns a big score for making bundles of dough from many industries currently shunned by investors and portfolio managers.

"And best of all, as the economy contracts, stocks in its highly concentrated and aggressive portfolio usually grow their corporate earnings while the broader market corrects. Bull or bear, it doesn't matter. The Vice Fund can generate profits in any economic environment -- provided people continue to gamble, drink and smoke.

"Launched in 2002, the Vice Fund is advised by Mutual Advisors, Inc, a small outfit with $177 million under management. But its size is actually highly advantageous to investors because of its ability to quickly enter and close trades and buy some companies that might be thinly traded.

"Altria Group (NYSE: MO) is a company in transition, catching its breath after spinning off giant Kraft Foods, restructuring North American production facilities, and preparing to sell Philip Morris International," notes Tom Slee.

The contributing analyst with Internet Wealth Builder has reaffirmed his buy rating, noting "Analysts expect an announcement in the next month or so about the divestiture, as well as plans for a major stock repurchase program."

He adds, "Not that Altria is resting on its laurels, however. The world's largest tobacco company is test marketing a smokeless tobacco in order to combat smoking bans."

The product, he points out, called Marlboro Snus, is a small pouch of dried tobacco that users place in the mouth. Unlike chewing tobacco, however, Snus do not require spitting.

He states, "Because of the health hazards and resulting litigation, tobacco remains a controversial industry. However, if you can put that aside, the fundamentals for leading producers such as Altria remain good.

Slee adds, "While Europeans and North Americans have been abandoning the habit, it's estimated that there are now more than 300 million male smokers in China, equal to about the entire U.S. population. Whether we like smoking or not, the fact is that Altria is extremely well positioned to benefit from what remains a growth industry."

Altria, like most stocks, has taken a beating, he observes. But, he adds, "The stock is now trading at 15.9 times this year's expected earnings of $4.25 and yielding 4.1% on a $2.76 dividend. This provides the stock with downside protection."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.