UBS Makes a Huge Addition to Quality Growth at a Reasonable Price Portfolio


This top dividend payer is a very safe play for investors in consumer staples. Colgate-Palmolive Co. (NYSE: CL) manufactures and sells consumer products worldwide.

The company offers oral care products, including toothpaste, toothbrushes and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; personal care products comprising bar and liquid hand soaps, shower gels, shampoos, conditioners and deodorants and antiperspirants; and home care products, such as laundry and dishwashing detergents, fabric conditioners, household cleaners and so on.

Colgate-Palmolive also provides pet nutrition products for everyday nutritional needs, a range of therapeutic products to manage disease conditions and various products with natural ingredients. It markets and sells its pet nutrition products for dogs and cats through pet supply retailers and veterinarians.

Principal global and regional trademarks include Colgate, Palmolive, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sorriso, Kolynos, elmex, Tom’s of Maine, Sanex, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet, Hill’s Prescription Diet and Hill’s Ideal Balance.

Colgate-Palmolive investors are paid a 2.17% dividend. UBS has a $70 price target for the stock, and the consensus target price is $73.13. Shares closed most recently at $73.90.

Home Depot

This company remains the undisputed leader in the home improvement retail category. Home Depot Inc. (NYSE: HD) is the world’s largest home improvement specialty retailer, with 2,270 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.

Home Depot stores sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance and professional service programs to do-it-yourself (DIY), do-it-for-me (DIFM) and professional customers.

Home Depot could continue to be a benefactor from the huge, ongoing rebuilding efforts across the United States as a result of flooding and tornadoes that have caused extensive damage over the past year. With spring right around the corner, there is always a chance for more storms.

Home Depot investors are paid a 2.4% dividend The $160 UBS price target is compares with the consensus price objective of $156.10. The stock closed Thursday at $148.73 per share.

United Technologies

This is a very diversified company with large government contract exposure, and it is also on the UBS Equity Focus List. United Technologies Corp. (NYSE: UTX) is an industrial that provides high-technology products and services to aerospace industries and building systems worldwide. Its segments are UTC Climate, Otis, Controls & Security, UTC Aerospace Systems and Pratt & Whitney.

Many Wall Street analysts believe the company is strategically positioned to benefit from two megatrends in the long-term: urbanization and commercial aerospace. The company received good news recently as the military and foreign buyers are set to increase purchase of the F-135 Jets. UTC’s Pratt & Whitney division, which builds the F135 engine for the military, earns a superb 22.5% profit margin on its products.

Investors are paid a solid 2.35% dividend. The UBS price target is $123, and the posted consensus target is $118.51. The stock closed most recently at $112.34.

These top companies are solid ideas for investors looking to maintain equity weightings but who want to avoid stocks that are expensive. All make good sense for growth portfolios with some risk tolerance.