There are still all sorts of blue chips trading right at their 52-week highs; some are trading at their all-time highs and the best part about this is that these companies are not expensively priced on the stock market.
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New York, NY (PRWEB) November 04, 2012
In a recent Profit Confidential article, Mitchell Clark, contributor to Profit Confidential, reports that Colgate-Palmolive just hit an all-time record high of $110.97(split adjusted), up from approximately $75.00 a share two years ago. (Source: “Colgate-Palmolive e-Chart,” Yahoo! Finance, last accessed November 1, 2012.) According to Clark, Colgate-Palmolive is just one of the blue chips having an outstanding year on the stock market, as blue chips are proving to be excellent long-term wealth creators for income-seeking investors.
“There are still all sorts of blue chips trading right at their 52-week highs; some are trading at their all-time highs,” Clark points out. “And the best part about this is that these companies are not expensively priced on the stock market.”
Clark believes that after a major correction, Colgate-Palmolive will be very attractive for new investors.
In the article “Want a Stock Hitting a Record High? Bring on the Dish Soap,” Clark notes that a stock market investor can do equally well, if not better, picking stocks among dividend-paying blue chips, especially in the age of austerity and slow economic growth.
“Large-cap companies have the power, money, and diversified assets to withstand the business cycle much better than small companies; if business is slow, all they have to do to keep shareholders happy is increase their dividends and/or share buybacks,” reasons Clark.
The Profit Confidential expert notes that returns from dividend-paying blue chips compound if the stockholder reinvests dividend payments into new shares. According to Clark, lots of blue chips offer commission-free dividend-reinvestment plans.
“Kimberly-Clark is another company trading around its all-time high with a current dividend yield of 3.5%,” reports Clark. “This company has an approximate price-to-earnings ratio of 19, and its earnings are expected to grow about seven percent this year.” (Source: Yahoo! Finance, last accessed October 15, 2012.)
Clark concludes that with so many blue chips trading at heir highs, and given valuations, all this stock market needs are “maintenance” earnings—earnings that just meet expectations.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.