When it comes to locating the best of the best stocks to own, I like to see more than one positive metric. In fact, I like to look for what I call “triple-threat” stocks. These include companies that recently have reported strong earnings, and that also have made the move to increase shareholder wealth by upping their dividend.
Of course, the first two metrics are great, but if investors haven’t also responded positively by buying the stock and sending its price share higher, then the solid earnings and dividend hikes are basically for naught. The way I see it, it doesn’t matter if the earnings and dividend are there — if the stock price is languishing, the stock isn’t capturing enough investor interest. “Expensive” stocks often are expensive for a reason: They’re worth it.
With these metrics in mind, I took a look at the bluest of blue-chip companies — those in the elite S&P 100 club. A quick screen of the index revealed that more than a third of the S&P 100 companies have increased their dividend payouts so far in 2012. But the ones that stand out are my top five triple threat blue-chip stocks so far in 2012: