Procter & Gamble
Despite a recent very solid run, this stock is still trading below where it was this time last year, partly because it has a very large 65% of sales directed to foreign customers. That should improve as the dollar run looks to be slowing down. Procter & Gamble Co. (NYSE: PG) is a solid consumer staples stock, especially for conservative investors to consider.
The company sells lots of run-of-the-mill household items that are essential for everyday life, and it is not content to stand pat on its laurels. The company actually is innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends.
While currency headwinds have weighed on recent earnings and projections, the dollar may be topping out this fall, and that would bode well for Procter & Gamble in the future.
Shareholders are paid a very solid 3.27% dividend. The $85 Merrill Lynch price target is higher than the consensus estimate of $83.21. The stock ended last week at $81.20 per share.
This top telecommunications company recently did away with some phone incentives, and its stock resides on the Merrill Lynch US 1 list. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.
Wall Street has applauded Frontier’s acquisition of Verizon’s wireline operations in California, Florida and Texas, which is expected to be completed at the end of March 2016. Many feel that focusing on the higher margin segments at the company makes sense, and the sale to Frontier is a huge cash boost to the balance sheet. The company also reported solid fourth-quarter numbers with earnings slightly higher than the Merrill Lynch estimates and revenues right in line, but above the street consensus.
Verizon investors receive a massive 4.43% dividend. While the Merrill Lynch price target is set at $55, the consensus price objective is $50.71. Shares closed Friday at $50.97.
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For worried investors that need an income stream, all these top stocks makes good sense for growth and income portfolios. The total return potential is solid, and the downside risk is far less than with momentum stocks. Plus, add in the very oversold status of the overall market, and the upside could be stellar for patient investors.