Holiday Portfolio: Auld Lang Syne

Taking second place this year is Altria (MO Quote). This consumer conglomerate (call it a tobacco company, if you wish) remains a key member of many consumer portfolios. It is a stalwart in both good and difficult markets, a result of robust cash flow and its history of consistently hiking its dividend every year.

This could well be another solid year for the company as it works toward the spinoff of Kraft (KFT Quote). Yes, Altria is a tobacco stock, so if you can't deal with owning tobacco, then don't own this name. But it does post solid results, and that's what makes a stock rise.

Third place in the Holiday Portfolio goes to Microsoft (MSFT Quote), a name that many were ready to write off earlier in the year. Mister Softee could be in for another solid year, especially if the bugs from Vista are worked out and the long-awaited technology upgrade and replacement cycle finally begin. In fact, we may get a chance to revisit Microsoft during the holidays of 2007.

In fourth position is the most volatile member of the Holiday Portfolio over the past month, Pfizer (PFE Quote). The pharmaceutical giant dropped a bombshell in early December, saying it was discontinuing trials of its next-generation cholesterol drug, torcetrapib, due to unexpectedly high death rates. After slumping more than 10%, the stock rallied and gained recent support from a 20%-plus increase in its dividend and the appointment of the company's president to the additional role of chairman, replacing the outgoing Hank McKinnell.