6 Low-Risk, Dividend-Rich Buys
Stocks made the bottom (Oct. 3) we were expecting, and while there will be fits and starts, the rebound now looks good to go for most of the fourth quarter and possibly into the first few weeks of 2012. But that doesn’t mean you should get complacent. Many signs point to a global economic slowdown next year, which may come back to haunt equities.
Smart investors should take advantage of rallies to shed stocks and mutual funds that lack strong defensive attributes. But what about stocks to buy?
Many of my favorite low-risk stocks are trading only a few percentage points below their 2011 highs. While that’s great if you already own them, it also means you need to be fussy with new purchases.
At this point, I would focus on the following four names, all of which are still cheap enough to allow at least a 15% total return (dividends plus appreciation) during the next 12 months.