This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three Best Dow Stocks for 2010

BOSTON ( TheStreet) -- Investing in companies that are members of the Dow Jones Industrial Average isn't going to make anyone rich. If that were the case, the U.S. would swell with millionaires, and investment managers would be out of work.

Dow stocks are too big and widely traded for investors to find deep value that others have missed. In a way, the 30 companies are the stock market. Stocks such as Wal-Mart (WMT - Get Report), Microsoft (MSFT - Get Report) and General Electric (GE - Get Report) rarely beat indexes by leaps and bounds. They can, however, offer stability after a year in which U.S. stocks fell by more than half from their peak and then rocketed more than 60% from a low in March.

Dow cornerstones provide a stable base and offer a fair amount of current income because most member companies pay relatively large dividends. Both AT&T (T) and Verizon (VZ - Get Report) pay dividends that yield over 5%, more than that of the benchmark 10-year Treasury bond.

Here are three Dow stocks that could serve as a backbone and a growth catalyst for a portfolio. America most likely will see cautious optimism return this year after the deepest recession in 80 years. International diversification is key, since emerging markets are projected by economists to outstrip U.S. growth.

Johnson & Johnson (JNJ - Get Report): Merck (MRK) and Pfizer (PFE), other pharmaceutical companies in the Dow Jones Industrial Average, don't have much going on outside of the drug game. Drugs represent about a third of Johnson & Johnson's business. With a strong consumer-products division and a medical-device unit that makes everything from contact lenses to joint replacements, Johnson & Johnson is insulated from the disastrous risk of a weak drug pipeline.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GE $26.10 0.00%
IBM $161.99 0.00%
JNJ $100.21 0.00%
MSFT $46.70 0.00%
VZ $46.79 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs