This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 'High-Quality' Stocks for 2012

Stocks in this article: GE HAS MO CVX RY ABT HRS DD T UGI ^GSPC ^IXIC ^DJI

NEW YORK ( TheStreet -- Given the volatility the market's endured since August, it's still too early to get confident about a positive finish for 2011.

Europe's leaders seem to have done enough to placate Wall Street for now but the major U.S. indices are still beholden to the latest headlines from across the pond. After Friday's rally, the Dow Jones Industrial Average is up more than 5% for the year, but that gain is the result of an 8.5% surge in the past two weeks. The S&P 500 is flat on a price basis, so it really could go either way.

Whatever the rest of the year brings, S&P Capital IQ is feeling pretty bullish about 2012, especially the first half of the year. The firm lifted its year-end 2012 target for the S&P 500 to 1400 from 1360 on Wednesday, citing improved economic data of late and a belief that the low of 1100 in early October concluded a "near miss" correction phase. The index closed Friday at 1255.

The feeling is the rally will come early with the S&P 500 possibly reaching 1400 as soon as the first quarter then becoming vulnerable to another correction phase in the second and third quarters.

Sam Stovall, chief equity strategist at S&P Capital IQ, said in commentary Friday that the fact that the current bull market is entering its fourth year also bodes well with the average price gain coming in at 9.5% in previous instances, more than twice the average advance in the third year. The firm's suggested model portfolio is 60% stocks and 40% fixed income.

"We recommend that a hypothetical 'moderate' investor have a 45% exposure to U.S. equities, 15% holding of foreign stocks, a 25% weighting to bonds, which is below the normal 30% exposure, and a 15% holding of cash, which is up from our normal 10% recommendation," Stovall said.

As for individual stocks, S&P Capital IQ ran a screen to find high quality names for individual investors using its MarketScope Advisor research platform. The 10 stocks that follow met criteria of growing earnings over the past 10 years, having a dividend yield of 3% or more, and ratings from S&P Capital IQ's analysts of either strong buy or buy complemented by proprietary Quality Rankings of B+ or higher.

The full list of stocks highlighted by S&P Capital IQ is as follows: General Electric (GE), Hasbro (HAS), DuPont (DD), Altria (MO), Chevron (CVX), AT&T (T), Harris Corp. (HRS), Royal Bank of Canada (RY), UGI Corp. (UGI), and Abbott Labs (ABT).

Here's some background and a bit of analysis on five of these names: GE, Hasbro, DuPont, Altria and AT&T.

1 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs