Posted on 03 February 2012.
There are many ways to define the hottest stocks to buy. The list may include the ones that display the greatest daily volume or currently have the largest amount of buzz on the financial shows. One has to wonder if this is truly the best way to select a stock, particularly in such troubled times. Another way of looking at the equation may be to consider what attributes are most desirable in a stock under these circumstances. It may well be that steady performers which avoid the perils of volatility and offer strong dividends in lieu of the bank interest that nobody is earning on their deposits could be the real superstars of today’s market environment.
• Once the dream of Abraham Lincoln, the Union Pacific Railroad (UNP) has paid out dividends continuously for more than a hundred years. Booming infrastructure and oil field construction, coupled with the need to move increasing amount of domestic crude oil to distant refineries has made UNP one of the safest plays on the market. Its 2.2% dividend is more than double what a bank CD offers and the stock continues to appreciate on top of that.
• Archer Daniels Midland (ADM) is a company whose products are in every household but is not generally a household name. The agricultural giant pays a tidy 2.3% dividend, has low debt and a small P/E ratio that signifies the possibility of stock appreciation to bring it more in line with historical trends.
• While cigarettes are not most people’s product of choice these days, their manufacture remains wildly profitable as evidenced by the continuing rise in dividends of Altria (MO). With a stock price in the high twenties, this is one of the hottest stocks to buy due to its $1.64 dividend payment. Altria has raised the dividend 45 times in the last 43 years and currently pays out 5.7%.
The thing that makes these three companies among the hottest stocks to buy is their rock-solid performance that yields constant profit and allows the investor to sleep at night without worries.
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