To navigate the current market structure successfully, patience and focus on your own individual objectives (as opposed to the performance of broader stock market indices) are key.
So, given the nasty bind the U.S. finds itself in on the geopolitical front, the ongoing fiscal mess we are in, the winter stage of the economic cycle, and little in the way of upside economic momentum, what is your clear-cut investment strategy?
Here are five stock picks that investors should keep their eyes on:
Procter & Gamble (PG)
A competitor recently infringed on some of Procter & Gamble‘s (PG) Crest Whitestrips patents, and the two parties went to court. Unsurprisingly, the innovators at P&G won the case. P&G’s Whitestrips can remove 14 years of stains from teeth and represent a revolution in at-home tooth-whitening.
Strong research is invaluable, and there aren’t many companies with a greater reputation for innovation than P&G. The price for P&G shares is well below trend on my long-term chart. Buy P&G.
Clorox (CLX)
Just recently, a wave of takeover chatter surrounded Clorox (CLX) shares, which is not unusual. Clorox is rumored to have rejected the offer. Clorox remains a takeover target but is also a well-run company with plenty of upside for expansion of its brands, especially overseas.
Promising to deliver on that upside potential is Clorox’s new CEO, Benno Dorer, formerly of P&G. Dorer has planned a much more aggressive Clorox, with more advertising and attention to “profitable growth.” My price chart shows the market’s reaction to the takeover rumors and that Clorox has room to run. Buy Clorox.
Duke Energy (DUK)
The sheer size of Duke Energy (DUK) helps it alleviate some risks that other utilities face. As one of the largest utilities in the country, Duke Energy has extra bargaining power with fuel suppliers. Unlike Duke Energy, not many utilities can credibly claim geographical diversification.
Duke Energy operates regulated utilities from Northern Indiana all the way down to central Florida, not to mention its 4,600 MW power generation portfolio in Latin America or nationwide 1,740 MW commercial power portfolio. My price chart shows a strong and steady trend for Duke Energy shares. Buy Duke Energy.
Kinder Morgan Inc. (KMI)
I want you to buy shares in Kinder Morgan Inc. (KMI), the Kinder Morgan that will ultimately own all the other pieces of the Kinder Morgan universe.
My price chart shows that Kinder Morgan shares have pulled back a little, and now is the time for you to buy Kinder Morgan. The pipeline business and Kinder Morgan make sense long-term in an energy-hungry country that lives on the coasts and finds its fuel in the heartland.
Nestle (NSRGY)
Dollar strength has been hurting the price of foreign company shares, but for foreign companies with large U.S. businesses like Nestle (NSRGY), the strength of the dollar will eventually shine through on the income statement.
My long-term chart shows Nestle breaking down below trend. This isn’t something that happens often and represents one of the best buying opportunities on Nestle in some time. Make your Nestle purchase today.
To get the rest of Dick Young’s top stocks to buy this month for stability and long-term dividend growth, sign up for his newsletter, Intelligence Report.
