Investing

Credit Suisse Adds Blue Chip Dividend Stocks to Prestigious Top Picks List

General Electric

This iconic blue chip industrial has lagged the market for years, but Norman Peltz’s Trian fund apparently loves the stock and just announced a $2.5 billion stake in the company. General Electric Co. (NYSE: GE) is a highly diversified, global industrial corporation. The company’s products and services include power generation equipment, aircraft engines, locomotives, medical equipment, appliances, commercial leasing and personal finance. Some Wall Street analysts feel that the iconic American giant will be a large player in the efficient energy field.

GE announced a restructuring plan earlier this year that includes buying back up to $50 billion of its shares, selling about $30 billion in real estate assets over the next two years and divesting more GE Capital operations. The repurchase program, which will be partly funded by $35 billion through money returned from GE Capital, is the second-biggest in history after Apple’s $90 billion plan. GE, which had 10.06 billion shares outstanding on Jan. 31, said it expected to reduce that by as much as 20% to 8.0 billion or so by 2018.

Furthermore, with the European Union approving the Alstom plan recently, the stock could be poised for a run.

Investors are paid a solid 3.61% dividend. The Credit Suisse price target is $31, and the consensus target is $30.23. Shares closed Friday at $25.47.

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Intercontinental Exchange Group

This top exchange company offers potential continued growth for aggressive investors. Intercontinental Exchange Group Inc. (NYSE: ICE) is expected to have earnings growth in the 2015 to 2016 period of a very solid 21.3%. The company boasts the leading network of regulated exchanges and clearinghouses for financial and commodity markets. It delivers transparent, reliable and accessible data, technology and risk management services to markets around the world through its portfolio of exchanges, including the New York Stock Exchange, ICE Futures, Liffe and Euronext.

Company management recently noted to analysts that, while recent volatility is boosting exchange volumes, much of the focus for the company is on the positive long-term potential of the data services business, where growth is in the early stages.

Investors are paid a 1.3% dividend. The Credit Suisse price objective is $245, and the consensus target is $260.62. The shares closed Friday at $231.48.

Wal-Mart

This top retail stock has been hit hard and could offer solid upside for patient investors. Wal-Mart Stores Inc. (NYSE: WMT) made a big splash earlier in 2015 when the giant retailer raised the wages of approximately 500,000 of its employees by lifting its base wage to $10 by 2016 for current workers (and to the same rate for new hires after six months training). The company, which is the largest employer in some U.S. states, has been under fire for some time over employee pay, and this action was a very positive note.

While many Americans have seen a bump in their take-home pay from lower gas prices, discount stores are still a huge draw for bargain shoppers, and Wal-Mart is the biggest of them all. Having traded off almost 30% since January, this may be an outstanding buy at current levels.

Wal-Mart investors are paid a solid 3.05% dividend. The Credit Suisse price target is $85, and the consensus target is $84.50. Shares closed on Friday at $64.95.

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Credit Suisse is adding some top conservative dividend-paying stocks to its Top Picks list, and that is right in line with what other top Wall Street firms are doing. It makes sense after a difficult year when the markets will have to fight hard just to break even.

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