Amid the volatility in 2011, many investors took shelter in high-yield blue chips with stable operations. Tobacco giant Philip Morris International (NYSE:PM) tacked on 35% last year. Utility stocks like Dominion (NYSE:D) and Consolidated Edison (NYSE:ED) tacked on 25% gains. All while the S&P 500 struggled to stay flat. A focus on dividends persists in 2012, even though stocks have recorded their best January since 1997. After all, a little gain in your portfolio is not a sign that problems like the eurozone debt crisis or the beaten-down U.S. housing market have been solved.
A good middle road to walk, therefore, is midcap companies with decent upside potential for shares that still pay out a substantial dividend. These stocks are riskier and the dividends sometimes can be less stable, but they also show the power of investing in a growth stock that pays a dividend instead of a mature business already bumping its head against the ceiling.
Source: InvestorPlace
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