The UBS quality growth at a reasonable price recommendation list (Q-GARP) is very timely for investors concerned that the stock market may be overbought and ripe for a correction. The UBS list was launched more than six years ago and attempts to identify companies with above-average and relatively stable profitability, strong secular earnings growth prospects and attractive valuations. While the market could have a 7% or more correction like the one we experienced from May to June, if we have entered a secular bull market that may be shrugged off fairly quick. Here are the top new stocks to buy and the top dividend yielding stocks to buy on the Q-GARP list.

PetSmart Inc. (NASDAQ: PETM) is added to the list, and as pet lovers know, the store is always packed. Following the stock’s recent underperformance of both the markets and its retail peers over the past 12 months, UBS believes PetSmart’s current valuation provides a compelling entry point for a company that likely will deliver at least low-teens earnings per share growth over the next few years. The UBS price target is $79. The Thomson/First Call consensus price target is at $75. Investors are paid a small 0.9% dividend.

Franklin Resources Inc. (NYSE: BEN) is also a top new addition to the Q-GARP list. The company runs the Franklin/Templeton line of mutual funds. The shares have dropped 13% over the past two months, and UBS believes that fears concerning outflows in its flagship Global Bond fund are overblown. Longer term, the company is well positioned to continue to deliver strong growth in assets under management (which have increased at a 10% annualized rate over the past decade) driven by inflows into the company’s higher rated funds. The UBS price target is $59 and the consensus number is at $56. Investors are paid a 0.8% dividend.

Ameriprise Financial Inc. (NYSE: AMP) is a top financial name to buy. The stock has been on fire, but consistent gains in assets under management and prudent expansion plans have continued to drive strong earnings. The UBS target for the stock is posted at $101, while the consensus target is $94. Investors receive a 2.3% dividend.

Coca-Cola Co. (NYSE: KO) still remains one of the top holdings in Warren Buffett’s portfolio. The venerable soft drink company has added hundreds of products to its lineup to go along with the flagship Coke soft drink. The UBS price target for this iconic name is $47, and the consensus target is $45. Investors are paid a 2.8% dividend.

E.I. du Pont de Nemours and Co. (NYSE: DD), known by all as DuPont, is a top large cap name on the list. The company recently closed a deal to buy an 80% stake in Pannar Seed, a South African firm that DuPont thinks will greatly expand its access to new markets and boost research efforts for farmers in that nation. UBS has a $64 price target, and the consensus figure is lower at $57.50. Investors receive a solid 3.0% dividend.

Emerson Electric Co. (NYSE: EMR) is a top diversified electronics company. On Tuesday it announced plans to sell a majority stake in its embedded computing and power business for $300 million. This takes the company out of a control position in a business that has put a damper on earnings in the past few quarters. UBS has a $60 price objective for the stock, and the consensus target is at $62. Investors are paid a 2.6% dividend.

Medtronic Inc. (NYSE: MDT) is a top medical device stock to buy and makes the Q-GARP list. The company announced yesterday the first implant of a novel deep brain stimulation (DBS) system that, for the first time, enables the sensing and recording of select brain activity while simultaneously providing targeted DBS therapy. This could be a huge breakthrough for patients with Parkinson’s disease. The UBS price target is set at $57, and the consensus number is at $55.50. Shareholders are paid a 2.0% dividend.

Starbucks Corp. (NASDAQ: SBUX) continues to expand its domestic and worldwide footprint at breakneck speed. The company posted strong fiscal third-quarter results with revenue increasing 13% year-over-year. Increased store productivity continues to be the major driver behind the company’s fantastic revenue growth. Global same-store sales advanced 8% year-over-year on traffic that was 7% higher than that in the year-ago period. UBS has a $79 price target, while the consensus figure is $81. Investors are paid a 1.1% dividend.

United Technologies Corp. (NYSE: UTX) has been hitting new all-time highs, yet still trade as just over 15 times earnings. The company just released a strong earnings report and raised its full-year outlook, but while the company’s near future looks sunny, investors still need to watch how sequestration budget cuts will affect the growth potential in the coming years. The UBS price target for the stock is placed at $122 , while the consensus target is at $117. Investors are paid a 2.0% dividend.

Q-GARP stocks are the way to look as the market pushes ever higher. The stocks that typically are massacred in a steep correction are momentum stocks. Quality growth stocks with solid earnings and dividends may get nicked, but nowhere near as bad as trendy momentum names. As we have recommended in the past, investors mat want to buy partial positions or scale in with the markets at near or at record highs.

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