15 Dividend Stocks for a Big-Cap Comeback

The list includes what you might expect: several companies based in countries that have not forgotten the value of the dividends, some energy-complex companies that are capable of throwing off a lot of cash flow to shareholders, and cigarette companies that are both undervalued and prodigious generators of cash.

Safe Complements

While unexciting, they probably will provide the foundation for portfolios that have more speculative investments and trades as well. They're a good counterbalance for stocks like the ones I suggested you consider in the columns "New Life for the Undead of the Market" and "25 Momentum Stocks for the Gambler in You."

Here's a closer look at some members of the group:

• Tenaris (TS) is a maker of steel pipes for the oil and electricity industries, with major operations in South America and Europe. It has had a huge run to $50 from the $16 level where it traded back in late 2003. The stock has softened lately with the decline in energy prices. A spark in oil would reignite these shares.
• Cemex (CX), the big Mexican cement manufacturer, just recently climbed off the mat and moved to a new high as word of a worldwide cement shortage has encouraged buyers to take advantage of its value opportunity.
• Cigarette giants Altria (MO) and Reynolds America (RAI) -- makers of Marlboro and Winston, respectively -- both have valuations that remain under pressure as cigarette litigation winds through the court system. But yields around 5% help compensate shareholders for those risks.
• Among consumer products companies, Clorox (CLX) has been a clear winner for the past four years and shows no signs of mucking up its success. With its clear brand strategy and innovative marketing and product development teams, it has managed to generate superior returns on capital and equity both in the U.S. and abroad. Including dividends, shares are up 20.6% this year, which is all you could ask for.

It doesn't make sense to switch to an all-large-cap portfolio. But as you find opportunities to take profits in small-caps, some of these -- and others I'll discuss in coming weeks -- may be sensible alternatives to consider.

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