Five Dividend Stocks To Watch

Posted by D4L | Thursday, December 04, 2008 | | 5 comments »

Blue chip dividend stocks usually carry a premium. Often this premium is in excess of what I am willing to pay. With Monday's market slide followed by Tuesday and Wednesday's subsequent recovery, it appears that good stocks can fall into an after-Thanksgiving mark-down sale at anytime. Here are five stocks that I am watching closely, with their Risk Quality (RQ) rating and other information as of 12/1/2008:

I. Procter & Gamble Co. (PG )

  • RQ: A1
  • Yield: 2.49%
  • Buy Below: $59.70
  • 12/1/2008 Close: $60.49
  • % Change since 12/31/2007: -17.6% ($73.42)

II. Wells Fargo & Company (WFC)

  • RQ: A2
  • Yield: 4.71%
  • Buy Below: $26.44
  • 12/1/2008 Close: $23.41
  • % Change since 12/31/2007: -22.5% ($30.19)

III. Kimberly-Clark Corporation (KMB)
  • RQ: A2
  • Yield: 4.02%
  • Buy Below: $52.87
  • 12/1/2008 Close: $55.02
  • % Change since 12/31/2007: -20.7% ($69.34)

IV. Progress Energy, Inc. (PGN)
  • RQ: A5
  • Yield: 6.20%
  • Buy Below: $36.95
  • 12/1/2008 Close: $37.73
  • % Change since 12/31/2007: -22.1% ($48.43)

V. The Coca-Cola Company (KO)
  • RQ: A2
  • Yield: 3.24%
  • Buy Below: $45.35
  • 12/1/2008 Close: $44.33
  • % Change since 12/31/2007: -27.8% ($61.37)
When the market is in a free-fall, it is important to concentrate on quality. Each of the above stocks has a RQ rating of A5 or better. Their share price has declined significantly less that the 44.1% decrease of S&P 500 as measured by VFINX ($135.15 down to $75.54). I suspect Monday was not the last after-Thanksgiving sale of 2008.

As always, you should perform your own research and reach your own conclusion before buying or selling an investment security.

Full Disclosure: As of this writing, I was long in VFINX, PG, PGN and KO


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5 comments

  1. Jae Jun // December 4, 2008 at 11:49 AM

    I like them all except I havent heard of Progress Energy before.

    My current challenge is to set my 401k on autopilot on quality dividend stocks or great value stocks as I've come to realise some big limitations with my account.

    I just cant seem to decide what to buy.. The difficulties of having too many choices.

  2. Dividends4Life // December 4, 2008 at 10:03 PM

    Jae Jun: It is really nice to have a lot to choose from. I still remember have to pick the lessor of two overpriced stocks.

    Best Wishes,
    D4L

  3. STOCKMANMARC // December 5, 2008 at 10:09 PM

    Jae & D4L

    Yes their are so many more choices and ideas out their than there were even 2 or 3 months ago. Taking one from Buffett "I feel like an over sexed guy in a whore house".

  4. The Intelligent Investor // December 11, 2008 at 9:47 PM

    I like your list. I am long on KO since October. I think they do an impressive job of localizing their advertising campaigns.

    Verizon dividend is over 5% as of today. They raised their dividend 7% in October. I'm curious what RQ rating you would give them?

  5. Dividends4Life // December 12, 2008 at 7:13 AM

    The Intelligent Investor: VZ has a RQ of B5.

    Best Wishes,
    D4L

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