Top 8 Companies to Invest in 2012 that Increasing Dividends

Volatility in the equity markets is back, as stocks continue their quick reactions to the myriad news events and developments coming out of Europe. Sharp selloffs and big price spikes occurred throughout the week, much to the delight of swing traders.
For investors, and particularly for income investors, the week also saw some very big names boosting their payouts to shareholders, including several large retail and industrial firms. Eight companies made it onto our Companies Increasing Dividends list this week. Here they are:

Top 10 Dow Dividend Stocks

As the largest owner of life science real estate, Top 8 Companies to Invest in 2012 that  Increasing Dividends - Alexandria Real Estate Equities (NYSE:ARE) collects big rents from its tenants. This week, the REIT returned some of that rent to shareholders in the form of a 4% increase in its quarterly dividend to 51 cents per share. The new payout will be made on July 16 to shareholders of record as of June 29. The new dividend yield, based on the June 12 closing price of $69.36 (the day the dividend was announced), is 2.94%.
Convenience market operator Casey’s General Stores (NASDAQ:CASY) stocked shareholder shelves with a 10% higher quarterly payout to 16.5 cents per share. The dividend increase came despite quarterly earnings that missed Wall Street estimates. The new dividend is payable Aug. 15 to shareholders of record as of Aug. 1. The new dividend yield, based on the June 12 closing price of $59.91, is 1.1%.
Iconic construction and mining equipment maker Top 8 Companies to Invest in 2012 that  Increasing Dividends - Caterpillar (NYSE:CAT) dug into its fiscal mountain and unearthed a 13% higher dividend to 52 cents per share. The pumped up payload will be delivered on Aug. 20 to shareholders of record as of July 20. The new dividend yield, based on the June 13 closing price of $85.29, is 2.44%.
Medical device maker and Dependable Dividend Stock Top 8 Companies to Invest in 2012 that  Increasing Dividends - C.R. Bard Inc. (NYSE:BCR) sells products for vascular, urology and oncology applications. This week, the company fashioned a fiscal device for shareholders that boosted its payout 5% to 20 cents per share. The new dividend is payable Aug. 3 to shareholders of record as of July 23. The new dividend yield, based on the June 13 closing price of $99.44, is 0.8%. C.R. Bard has been paying dividends every year since 1960.
Diversified energy provider Top 8 Companies to Invest in 2012 that  Increasing Dividends - DTE Energy (NYSE:DTE) serves clients in the state of Michigan, and this week the Great Lakes-based company moved to add more fiscal water to shareholders’ ponds. The new dividend of 62 cents per share represents a 5.5% boost from the prior quarterly dividend. The new payout will be made Oct. 15 to shareholders of record as of Sept. 17. The new dividend yield, based on the June 14 closing price of $59.47, is 4.17%.
Industrial controls manufacturing giant Rockwell Automation (NYSE:ROK) turned up the dial on its quarterly dividend, lifting its payout 11% to 47 cents per share. The newly increased dividend is payable Sept. 10 to shareholders of record as of Aug. 13. The new dividend yield, based on the June 8 closing price of $69.87, is 2.69%. Separately, the company’s board approved the addition of $1 billion to its share repurchase program. This is in addition to the previous buyback authorization of $1 billion.
Cheap-chic retail behemoth Top 8 Companies to Invest in 2012 that  Increasing Dividends - Target (NYSE:TGT) increased the price it pays to shareholders by 20% to 36 cents per share. The new dividend price tag will be marked up on Sept. 10 to shareholders of record as of Aug. 15. The new dividend yield, based on the June 13 closing price of $58.05, is 2.48%. This payout represents the 180th consecutive quarter the company has paid dividends since it went public in 1967, putting it squarely on our list of Dependable Dividend Stocks.
Industrial conglomerate Top 8 Companies to Invest in 2012 that  Increasing Dividends - United Technologies (NYSE:UTX) is the parent company of jet engine maker Pratt & Whitney, Otis elevator, Sikorsky Aircraft and several other companies. This week, the diversified firm declared a new quarterly dividend of 53.5 cents per share, which represents an 11.5% increase over the prior payout. The new dividend will be delivered Sept. 10 to shareholders of record as of Aug. 17. The new dividend yield, based on the June 13 closing price of $73.54, is 2.91%.

2012 Best Investment Tips

Don't worry; it's nothing dangerous. In fact, if you're an income investor, this might be the start of a very prosperous trend.
In 2011 the first of 75 million Baby Boomers will hit 65 -- retirement years. You might be among them. This marks a major shift for millions of people that will play out over the next years and decades. And I think that it could mean soaring popularity for income investing.
In fact, my colleague Amy Calistri outlined the case in a recent Dividend Opportunities article:

"Think about it. Some estimates have this group [Baby Boomers] controlling over 80% of personal financial assets -- that's trillions of dollars. Much of that is tied up in housing and other non-liquid investments, but there are still loads of cash in traditional spots. According to the Investment Company Institute, there is $10.7 trillion in mutual funds alone. As Baby Boomers wind down their working years, they're going to do what retirees before them have done -- shift from riskier stocks and commodities into more buttoned-down income investments. In fact, given the rocky market over the past decade and disappearing pensions, the shift could be larger than most people think."

This could lead to a golden age for income investing. But as attractive an opportunity this may be, there is no guarantee the graying of the Baby Boomers will simply lead to a massive bull market across all income securities. That's why it's still most important to select high-quality ideas. If you do this, then any broad bull market will simply be icing on the cake.

So to help you find the best high-yield plays -- and maximize your returns -- I've rounded up some of my favorite income investing tips. I use these tips personally to help guide my portfolio choices in High-Yield Investing, so no matter your experience level, they should give you an edge in finding the best income investments on the market. And if we see the big shift into income securities in the years and decades ahead, all the better.
2012 Best Investment Tip #1 - Look off the beaten path: Always remember that yield is a combination of dividends paid and share price. If prices rise, the yield on a security falls, all else being equal.
So what will happen to many of the most popular high-yield spots if millions more are looking for solid income? Their prices would likely rise, pushing yields down.
That's why I think it's valuable to look off the beaten path for higher yields. You have to look into the special classes of securities built for income investors. My years of researching the income field have uncovered even the most rare of these assets, including securities like business development companies, stapled products, master limited partnerships, and even exchange-traded bonds. This is where you'll uncover truly mouth-watering yields overlooked by the majority of investors who are focused on common stocks.
2012 Best Investment Tip #2 - Dividend safety is key: For us income investors, nothing should be held in higher esteem than the safety of our dividends. After all, what's the use of a high dividend if it's only going to be cut a few weeks later?
But an amazing thing happens when you follow my first tip and look off the beaten path for income investments.
Common stocks are under no obligation to pay a dividend; they can cut their payments at any time if they please. But I've found a few securities -- such as preferred stocks -- that can't change or reduce their payments. A number of other little-known securities have the same restrictions, all but guaranteeing you'll be paid a stream of income you can count on.
2012 Best Investment Tip #3 - Use market downturns to find higher yields: Most investors look at a market downturn as a bad thing, and in fact, I would rather the market rise than fall. But I also appreciate the opportunities that appear in a downturn.
As I said, a stock's yield is a function of its price. If a stock pays $1 per share and trades at $20, its yield is 5%. If the same stock dips to $10 per share, the yield has risen to 10%.
That's one reason why I bought heavily during the recent market downturn -- the yields became too high to ignore! If you can stomach volatility during a bear market, you'll likely have a chance to lock in unnaturally high yields.
2012 Best Investment Tip #4 - Don't be afraid to take a loss: High-Yield Investing subscribers always ask me when to sell their holdings. And for good reason -- when you sell is just as important as when you buy.
I'm personally never afraid to take a loss. Many investors continue holding losing stocks and hope for a rebound, only to watch them sink further. I've seen this countless times, so I'm always sure to look at the reasons a holding is falling and if I should sell.
If the stock in general is falling with the market, I may not be worried. However, if a change in the company's operations mean it could see rocky times ahead, I don't want a part of it.
2012 Best Investment Tip #5 - Taxes matter: When is a lower yield more attractive than a higher yield that's just as safe? When the lower yield is taxed at a lower rate.
Consider this: An investor in the top federal tax bracket is invested in a municipal bond that pays 6%. Because the income from this bond is tax-free, the taxable-equivalent yield is actually 9.2%! In other words, if the same investment were in a fully taxable security, our investor would have to earn 9.2% to have the same income after taxes.
It doesn't take long for that difference to add up to serious cash.

2 Best Stocks to Invest for This Week in 2012

Volatility continued in the markets this week, with economic reports decidedly mixed.
While retail sales went through the roof, the housing market stats showed a slowdown in housing starts but a pickup in building permits and mortgage applications. Unemployment claims remained steady, and so did the leading indicators.
Earnings season continues to surprise on the positive side, yet Europe’s problems also impact our markets almost daily.
We are on the right side of the trend, so investors should remain optimistic but always cautious in their selections. This week, most of the companies that look interesting to me are a dividend payer and a technology player.
Here are my two favorites:

2 Best Stocks to Invest for This Week in 2012 - Silicon Motion Technology (NASDAQ:SIMO)

SIMO makes multimedia data processing, storage and transfer products, including flash memory, embedded graphics processors, mobile television tuners and LTE modem solutions.
Price: $22.09
Market cap: $685.94 million
Target: $$30
Why I Like It: While chip prices are down, improving economic conditions should strengthen technology, including the semiconductor market, in terms of volume. However, caution remains during this earnings period of volatility. There could be a short-term pullback in the shares, but expect long-term appreciation.

2 Best Stocks to Invest for This Week in 2012 - Huntington Bancshares (NASDAQ:HBAN)

HBAN is a regional bank in the Midwest, headquartered in Ohio.
Price: $6.45
Market cap: $5.7 billion
Dividend yield: 2.5%
Target: $9.50
Why I Like It: A well-run financial institution, Huntington should benefit from the resurgence of the banking industry. While banks are not traditionally barn-burners in terms of appreciation, HBAN looks interesting and pays a decent dividend while you await appreciation.

Top 5 Apparel Stocks to invest in 2012

Clothing, shoes and fashion accessories are hardly “necessities.” However, it’s indisputable that a certain segment of American consumers still has plenty of discretionary income and is looking to big brands more than ever before for comfort and, of course, a symbol of status.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve uncovered five clothing stocks to buy.
Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”
Top 5 Apparel Stocks to invest in 2012 - Coach (NYSE:COH) develops fine accessories including handbags for women. In the last 12 months, Coach stock is up 25%, compared to smaller gains by the broader markets. COH stock gets a “B” grade for sales growth, a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of COH stock.
Top 5 Apparel Stocks to invest in 2012 - Nike (NYSE:NKE) is one of the most famous athletic apparel developers in the world. In the last year, Nike stock is up 33%, compared to a gain of just 4% for the Dow Jones in the same time. NKE stock gets a “B” grade for sales growth and an “A” grade for return on equity. For more information, view my complete analysis of NKE stock.
Top 5 Apparel Stocks to invest in 2012 - Lululemon (NASDAQ:LULU) designs and sells technical athletic apparel and has experienced stock growth of 50% since January 1. Lululemon stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of LULU stock.
Top 5 Apparel Stocks to invest in 2012 - Ralph Lauren (NYSE:RL) sells men’s, women’s and children’s apparel, accessories, fragrances and home furnishings. Ralph Lauren stock has climbed 24% since this time last April. RL stock gets a “B” grade for sales growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of RL stock.
Top 5 Apparel Stocks to invest in 2012 - VF  (NYSE:VFC) is a global apparel company based in the United States. VFC stock has gained 42% in the past 12 months. VFC stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for earnings momentum and an “A” grade for return on equity. For more information, view my complete analysis of VFC stock.

3 Best Stocks to Invest for May in 2012

Are you familiar with the “coffee-can portfolio”?
In short, it was a simple way to invest for the long term developed by Bob Kirby, the late chairman of the Capital Group. Investors would buy the stocks of excellent companies, putting the stock certificates of those companies in a coffee can, never to be touched again — eliminating transaction costs and taxes.
In other words, it was buy-and-hold taken to the extreme.
Well, Morningstar took that concept in June 2005 and created its own coffee-can portfolio of 10 stocks chosen based on the discount to estimated fair value. As of April 5, 2012 the coffee-can portfolio was up 39% versus 33% for the 3 Best Stocks to Invest for May in 2012 SPDR S&P 500 (NYSE:SPY). While it’s not a huge difference, it’s enough to demonstrate that buy-and-hold investing, when done properly, still is a good idea.
However, a few of the coffee-can stocks seem a little stale. Of the original 10 stocks, three seem questionable: 3 Best Stocks to Invest for May in 2012 Federated Investors (NYSE:FII), 3 Best Stocks to Invest for May in 2012 Fifth Third Bancorp (NASDAQ:FITB) and IAC/Interactive (NASDAQ:IACI). I suggest replacing them with three new stocks, creating a modified version of Morningstar’s coffee-can portfolio. And from time to time, we’ll keep up on both the modified portfolio’s performance and the original, using April 9 as the start date.
Let the games begin.
3 Best Stocks to Invest for May in 2012 Franklin Resources
Barron’s published a favorable article March 31 extolling the virtues of Franklin Resources‘ (NYSE:BEN) asset diversity. With a good mix of equity (40%), fixed income (44%) and hybrid investments (15%) comprising the $670 billion in assets under management, clients are given asset allocation flexibility very few managers can match.
This flexibility has enabled it to attract clients from outside the U.S. About one-third of the $670 billion is held elsewhere, providing its business with geographic diversification as well.
With one of the strongest global retail-distribution networks anywhere, Goldman Sachs analyst Marc Irizarry believes BEN deserves more of a premium. Most importantly, its funds have a long-term track record second to none, finishing first in Barron’s most recent ranking of fund families. Considered smart allocators of capital, it paid a special dividend of $2 per share last December. While exchange-traded funds present a potential threat, it’s as solid an asset manager as there is, and long-term investors will be rewarded.
Morningstar currently gives Franklin Resources a fair value estimate of $145 — a 16% premium to its April 9 share price of $124.81. Its fair value estimate for Federated Investors, on the other hand, is $19 — a 15% discount to its April 9 stock price of $22.42.

U.S. Bancorp

3 Best Stocks to Invest for May in 2012 Berkshire Hathaway (NYSE:BRK.B, BRK.A) owns 78 million shares (4.1% of the outstanding) in U.S. Bancorp (NYSE:USB), the fifth-largest commercial bank in the U.S. It’s not Buffett’s biggest financial services investment — that distinction goes to Wells Fargo (NYSE:WFC) — but it does make a list of 14 stocks that Berkshire Hathaway owns with market values greater than $1 billion. That says a lot about the quality of U.S. Bancorp, in my opinion.
Buffett first acquired 23.3 million shares of the Minneapolis bank in the fourth quarter of 2006, adding 44.3 million shares the very next year and then small amounts thereafter. The fact that its book value investment at the end of 2011 was $300 million more than the market value tells me Buffett believes its intrinsic value is much higher than the average purchase price of $30.77 a share.

Liberty Interactive

Up until November, Liberty Media was comprised of three tracking stocks: Liberty Capital, Liberty Starz and Liberty Interactive. Liberty Capital and Liberty Starz were combined into 3 Best Stocks to Invest for May in 2012 Liberty Media (NASDAQ:LMCA) and it, along with Liberty Interactive (NASDAQ:LINTA), operate as two separate public companies, backed by their own assets. As a result, the tracking stocks no longer exist.
However, it seems Liberty founder John Malone couldn’t stay away from them, announcing in February that it would split Liberty Interactive into two tracking stocks; one for its interests in QVC and HSN Inc. (NASDAQ:HSNI) and the other, Liberty Ventures, for its interests in 3 Best Stocks to Invest for May in 2012 Expedia (NASDAQ:EXPE), 3 Best Stocks to Invest for May in 2012 Time Warner (NYSE:TWX) and Time Warner Cable (NYSE:TWC).
At first, you have to question the wisdom of doing this after making such a big deal about getting rid of tracking stocks in the first place. However, if you consider that QVC represents a significant portion of Liberty Interactive’s revenues and profits, the separation should help investors value both pieces of the puzzle. In the end, I think QVCs international expansion will continue to drive Liberty Interactive upward, with Liberty Ventures providing some extra juice.

Top 5 Stock To Buys for May in 2012

As mentioned last month, we’ve achieved some stability in regards to which stocks remain the crème de la crème. This month, we are keeping three of our previous month’s Top 5 stocks, swapping out two, and adding five new names to our Top Stocks list.
First, our swap-out names:
Top 5 Stock To Buys for May in 2012 Alexion Pharmaceuticals (NASDAQ:ALXN), and Top 5 Stock To Buys for May in 2012 McDonald’s (NYSE:MCD). Both of these stocks are still A-rated buys, and they are  held in high regard, but I’m substituting in two other consumer-driven stocks that have even better top- and bottom-line prospects. With consumer confidence and spending on the rise, you’ll want to get a piece of these companies that have stunning track records of accelerating sales growth.
Now let’s move to our additions:
As the leading auto parts chain in the U.S., AutoZone (NYSE:AZO) is known for helping its customers “Get in the Zone.” And lately, more and more people have been going to AutoZone to keep their cars running longer. This trend is most clearly shown in AutoZone’s quarterly same-store sales results, which have been steadily increasing over the past few quarters.
In the most recent quarter, the company’s same-store sales grew 5.9%, which accelerated from the prior quarter’s 4.6% gain. Another thing I love about this stock is that it has a solid history of share repurchase programs. A few weeks ago, management announced that the company is buying back an additional $750 million in its stock. The company is clearly committed to returning value to its shareholders.
Top 5 Stock To Buys for May in 2012 #1 Dollar General Corporation (NYSE:DG) is another retailer that has benefited from the recent wave of frugality that has hit the U.S. With just under 10,000 stores nationwide, the company offers a wide range of discount goods for $10 or less. I’m keeping both Dollar General and Dollar Tree on the Top 5 because they both serve two complementary but different functions as bargain retailers.
As it stands, Dollar General boasts better earnings growth (the second-best in the industry, in fact), while Dollar Tree has a better track record with its sales growth. Dollar General is also larger and has a slightly lower Price/Earnings ratio.
Top 5 Stock To Buys for May in 2012 #2 Dollar Tree (NASDAQ:DLTR) is slightly smaller than Dollar General, but with over 4,000 stores across the United States, it is the most successful single-price-point retailer in the nation. Towards the end of February, the company reported strong sales and earnings growth for the fourth quarter. Compared with the same quarter last year, net income climbed 16% to $187.9 million, or $1.60 per share, which was largely in line with the $1.59 per-share Street estimate. Over the same period, net sales climbed 13% to $1.95 billion, slightly topping the consensus sales estimate of $1.93 billion.
Similar to AutoZone, this company’s same-store sales have been accelerating as well. In fact, in the third quarter, Dollar Tree grew same-store sales by 4.8%, and then pulled off an astounding 7.3% same-store sales growth in the fourth quarter!
Top 5 Stock To Buys for May in 2012 #3 Lorillard (NYSE:LO) is one of four tobacco stocks we liket, and it was added last issue because it is a smaller and more agile company than any of the Big 3. And, in keeping with the rest of the tobacco industry, the company recently upped its dividend payment by 19.2% to $1.55 per share! This means that LO’s dividend yield now weighs in at 4.8%. This is lower than Altria Group Inc.‘s (NYSE:MO) 5.5% yield, and Top 5 Stock To Buys for May in 2012 #5 Reynolds American Inc.‘s (NYSE:RAI) 5.4% yield, but higher than Philip Morris International Inc.‘s (NYSE:PM) 3.6% yield.
With over 1,000 stores in the U.S., Top 5 Stock To Buys for May in 2012 #4 Ross Stores (NASDAQ:ROST) is the second-largest off-price apparel retailer in the country. The company recently released its same-store sales results for February, and the results were stunning. Last month, the fashion bargain chain grew same-store sales by 9%, which positively trounced the 4.6% consensus estimate and represents a significant uptick from its 5% growth in January.
Recently, thanks to a combination of higher merchandise gross margin and lower shortage costs, Ross Stores announced strong operating results for the fourth quarter. Compared with the same quarter last year, sales climbed 12% to $2.4 billion, and net earnings jumped 19% to $192 million, or $0.85 per share. These are solid results, as the retailer was able to accelerate earnings despite difficult year-over-year comparisons. Ross Stores continues to be a top off-price apparel retailer due to its ability to offer unbeatable brand-name bargains while maintaining lower store inventories. And the great thing is that the best is still yet to come.
Historically, March and April represents a strong sales season for Ross Stores, and management is hopeful that the company will continue to improve in the coming months.

Top 6 Fashion Stocks to Invest in 2012

While consumer spending overall hasn’t been great through the financial crisis and economic downturn, high-end merchandisers have thrived. That goes for companies that sell shoes, clothes and even handbags. High-quality and high-fashion goods are always in demand among the elite shoppers of the world, and related companies have profited as a result.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I present six high-fashion stocks to buy.
Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.” Here they are:
Top 6 Fashion Stocks to Invest in 2012 - Coach (NYSE:COH) is a designer of high-end accessories, with a focus on women’s handbags. In the last year, COH is up 57%, compared to the Dow Jones, which is up 11% in the same time. Coach stock gets a “B” grade for sales growth, a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of COH stock.
Top 6 Fashion Stocks to Invest in 2012 - Luxottica (NYSE:LUX) is an Italian designer and retailer of prescription frames and sunglasses. In the last 12 months, Luxottica stock is up 18%. LUX stock gets an “A” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and a “B” grade for return on equity. For more information, view my complete analysis of LUX stock.
Top 6 Fashion Stocks to Invest in 2012 - Nike (NYSE:NKE) is a designer, developer and marketer of sport footwear, apparel, equipment and accessories. In the last year, NKE has reported a significant gain of 44%. Nike stock gets a “B” grade for sales growth, a “B” grade for earnings momentum and an “A” grade for return on equity. For more information, view my complete analysis of NKE stock.
Top 6 Fashion Stocks to Invest in 2012 - Ralph Lauren (NYSE:RL) is famous for its men’s, women’s and children’s apparel, accessories, fragrances and home furnishings. RL has outpaced the broader markets with a gain of 51% since last March. Ralph Lauren stock gets a “B” grade for sales growth, a “B” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of RL stock.
Top 6 Fashion Stocks to Invest in 2012 - VF (NYSE:VFC) is global apparel company based in the U.S. and has watched its stock value soar 60% since last March. VFC stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for earnings momentum and an “A” grade for return on equity. For more information, view my complete analysis of VFC stock.
Top 6 Fashion Stocks to Invest in 2012 - Lululemon  (NASDAQ:LULU) designs and retails technical athletic apparel. Lululemon rounds out our list with a gain of 93% in the last year. LULU stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “A” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool.

3 Stocks To Inest in 2012 Which Build Wealth Long Term

Time is the great equalizer in the market. Getting into stocks early and often is a great way to build a healthy and wealthy portfolio in the long run.
Here are three of my favorite wealth builders at the moment to consider adding to your existing portfolio or a new one:

3 Stocks To Inest in 2012 - Altria Group (NYSE:MO)

This company, through its subsidiaries, manufactures and sells cigarettes, smokeless products and wine. It also manages a portfolio of leveraged and direct-finance leases. Adjusted for splits, Altria has increased its annual dividend 292% since 1989. The company is currently yielding 5.50%.

3 Stocks To Inest in 2012 -Linn Energy (NASDAQ:LINE)

Linn Energy engages in the acquisition and development of oil-and-gas properties in Mid-Continent, the Perriman Basin, Michigan, California, and the Williston Basin in the U.S.
As of Dec. 31, 2011, the company reported operating 7,759 gross productive wells and has proven reserves of 3,370 billion cubic feet equivalent of oil and gas and natural gas liquids. Since its IPO in January 2006, LINN has consistently paid a distribution each quarter and has increased its quarterly dividend by approximately 115%. Linn is currently yielding 7.2%.

3 Stocks To Inest in 2012 -McDonald’s (NYSE:MCD)

McDonald’s operates 33,000 restaurants in 119 countries serving nearly 68 million people every day. Although the company is in the process of changing management, MCD has raised its dividend every year since paying its first dividend in 1976. Adjusted for splits and dividends (using data supplied by Yahoo! Finance) the company has returned 44,322% since 1970. McDonald’s currently yields 2.9%.

7 Best Industrial Stocks to Sell in 2012

After the banks and homebuilders that fueled the housing bubble, the industrial sector was perhaps hardest hit by the financial crisis and resulting economic downturn. As overall spending and activity slowed, manufacturers took a beating — and many haven’t recovered.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve identified seven industrial stocks to sell.
Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”
7 Best Industrial Stocks to Sell in 2012 - ABB Ltd. (NYSE:ABB) works with power and automation technologies. While the Dow Jones has posted a gain of 9% in the last year, ABB has recorded a loss of 11% in the same time. ABB stock gets an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude with which earnings projections have increased over the past months. For more information, view my complete analysis of ABB stock.
7 Best Industrial Stocks to Sell in 2012 - Emerson Electric Co. (NYSE:EMR) is a diversified global technology company that has dropped 13% in the past 12 months. Emerson stock gets a “D” grade for sales growth, a “D” grade for earnings growth and a “D” grade for its ability to exceed the consensus earnings estimates. For more information, view my complete analysis of EMR stock.
7 Best Industrial Stocks to Sell in 2012 - Koninklijke Philips Electronics (NYSE:PHG) is the parent company of Philips Group and has 118 production sites in 27 countries. PHG stock has dipped more than 36% since March 2011. Philips stock gets a “D” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings growth, a “D” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “D” grade for the magnitude in which earnings projections have increased over the past months, a “D” grade for cash flow and a “D” grade for return on equity. For more information, view my complete analysis of PHG stock.
7 Best Industrial Stocks to Sell in 2012 - General Electric Co. (NYSE:GE) is the most well-known stock on this list. It’s involved in aircraft engines, power generation, water processing, household appliances, medical imaging, consumer financing and other endeavors. Despite its big name, GE has posted a loss of 4% in the last year. GE stock gets an “F” grade for sales growth. For more information, view my complete analysis of GE stock.
7 Best Industrial Stocks to Sell in 2012 - Siemens (NYSE:SI) is an electronics and electrical-engineering company. Despite gains by the broader markets, SI stock is down 21% in the last year. Siemens stock gets a “D” grade for sales growth, a “D” grade for earnings growth, an “F” grade for earnings momentum, a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude with which earnings projections have increased over the past months. For more information, view my complete analysis of SI stock.
7 Best Industrial Stocks to Sell in 2012 - Ingersoll-Rand (NYSE:IR) is involved in enhancing the comfort of air in homes and buildings, in the transport of food and perishables and in secure homes and commercial properties. Ingersoll-Rand stock has lost 13% in the last 12 months. IR stock gets an “F” grade for sales growth, an “F” grade for operating margin growth and a “D” grade for cash flow. For more information, view my complete analysis of IR stock.
CSX Corp. (NYSE: CSX) is a transportation supplier that rounds out the list with a 17% drop in the past year. CSX stock gets a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of CSX stock.

5 peny Stocks Under $5 That Insiders Love to buy in 2012

Penny stocks have a solid reputation for being a risky investment; however, if the potential rewards excite you, then the list below might provide an interesting starting point for your search.

To create the following list, we took a universe of penny stocks (priced under $5 per share) and searched for names with a market cap over $300 million experiencing significant levels of insider buying over the past six months.

Here are some of the things we looked at when compiling the list of penny stocks:

5 peny Stocks Under $5 That Insiders Love to buy in 2012 - Market Capitalization (Market Cap)

: Market capitalization, commonly referred to as market cap, is the total market value of a company’s outstanding shares. It can be thought of as a measure of a company’s size. Market cap can be calculated by multiplying the number of shares by the current price of the shares. Companies with higher market cap are considered to have more trustworthy information because they have greater histories of profitability and data.

5 peny Stocks Under $5 That Insiders Love to buy in 2012 -

Insider Trading: Many analysts follow insider buying trends because, after all, insiders know more about their companies than anyone else. Their investment activity is closely monitored and can tell us a lot about where they feel the business is heading. Insider buying is represented as a percentage of the share float. Companies experiencing insider buying over the past six months provide an indicator that insiders think the stock is undervalued at current levels. Inversely, insider selling serves as a negative indicator.

Now that you’re armed with information, take a look at the following list of penny stocks that insiders seem to think are good values. Use this list as a starting point for your own analysis, and always keep in mind that a low share price does not mean low risk. Companies below $5 are there for a reason. Use caution and stop losses at all times.

5 peny Stocks Under $5 That Insiders Love to buy in 2012 -Opko Health, Inc. (AMEX:OPK) is in the medical appliances and equipment industry and has a market cap of $1.16 billion. Net insider shares purchased over the current quarter comes in at 6.85 million, which is 5.03% of the company’s 136.31 million-share float.

The stock is a short squeeze candidate, with a short float at 9.47% (equivalent to 10.83 days of average volume). The stock has had a couple of great days, gaining 10.74% over the last week.

5 peny Stocks Under $5 That Insiders Love to buy in 2012 -

MannKind Corp. (NASDAQ:MNKD) is in the biotechnology industry with a market cap of $335.28 million. Net insider shares purchased over the current quarter comes in at 3.48 million, which is 4.39% of the company’s 79.29 million-share float.

The stock is a short squeeze candidate, with a short float at 28.55% (equivalent to 25.89 days of average volume). The stock has had a couple of great days, gaining 6.67% over the last week.

5 Stocks Under $5 That Insiders Love

These penny stocks have been the target of significant insider buying of late

Sep 1, 2011, 2:21 pm EST | By Kapitall.com

Vantage Drilling Company (AMEX:VTG) is in the oil and gas drilling and exploration industry with a market cap of $363.33 million. Net insider shares purchased over the current quarter come in at 5.35 million, which is 3.22% of the company’s 166.05 million-share float.

This is a risky stock that is significantly more volatile than the overall market (beta = 2.08). The stock has performed poorly over the last month, losing 23.78%.



TransAtlantic Petroleum Ltd. (AMEX:TAT) is in the oil and gas drilling and exploration industry with a market cap of $387.33 million. Net insider shares purchased over the current quarter comes in at 1.67 million, which is 0.81% of the company’s 205.75 million-share float. The stock has performed poorly over the last month, losing 27.4%.

5 peny Stocks Under $5 That Insiders Love to buy in 2012 -

Mueller Water Products, Inc. (NYSE:MWA) is in the industrial equipment and components industry with a market cap of $342.30 million. Net insider shares purchased over the current quarter comes in at 125,000, which is 0.09% of the company’s 132.60 million-share float.

This is a risky stock that is significantly more volatile than the overall market (beta = 2.48). The stock is a short squeeze candidate, with a short float at 7.27% (equivalent to 6.24 days of average volume). The stock has had a couple of great days, gaining 7.84% over the last week.

5 Health Care Penny Stocks to Buy in 2012

One of the residual benefits of the cantankerous debate regarding the debt ceiling in Washington is the health care sector. The debate on raising the debt limit has demonstrated the remarkable gains in political clout of the tea party and fiscally conservative elements of the GOP. With that clout, expect current health care legislation to be repealed or changed entirely at some point in the near future.
Already, the health care sector has been humming along in 2011. Stocks in the group have been rallying as politicians’ attention shifted to other priorities. Free to operate without the fear of onerous regulations, investors have been bidding up health care stocks like UnitedHealth (NYSE:UNH) and WellPoint (NYSE:WLP).
The biggest gains are yet to come, especially if the current health care law is repealed. I expect outsized gains in the sector, and I am particularly enamored with health care penny stocks. The SEC defines a penny stock as being less than $5 per share. The penny stocks mentioned here are all real companies with promising futures despite low prices.

5 Health Care Penny Stocks to Buy in 2012 - Catalyst Pharmaceutical Partners

Catalyst Pharmaceutical Partners (NASDAQ:CPRX) is a tiny health care penny stock with a $35 million market cap. Despite the low price, the average volume of shares traded is at 129,000 per day. There is plenty of action in this stock, including a recent analyst recommendation of “outperform” from Wall Street firm Cowen.
Catalyst Pharmaceutical is a biopharmaceutical company in search of drugs to treat neural system disorders. As one would expect, the company is losing money. The play here is to buy future success today. There really are only two outcomes: huge success or failure. Thus, this a higher-risk/high-reward health care penny stock.

5 Health Care Penny Stocks to Buy in 2012 -

Dynatronics

Low-priced health care penny stocks can generate significant returns. Dynatronics (NASDAQ:DYNT) is one of the best-performing under-$5 stocks in the market, with a gain of more than 100% this year.
The medical device-maker has signed impressive purchasing agreements that bode well for its future. The company, now trading for more than $1 per share, is listed on NASDAQ. That listing is likely to attract the attention of more buyers that otherwise would shun the company. A focus on chiropractic and alternative solutions to physical ailments holds much promise for this health care penny stock.

5 Health Care Penny Stocks to Buy in 2012 -

Pro-Dex

Pro-Dex (NASDAQ:PDEX) is a medical device company specializing in rotary drives and motors for physician and dental practitioners. This tiny health care penny stock has a valuation of only $6 million, and as a result, shares are volatile. In May, shares soared to more than $3, thanks in part to an impressive earnings report.
The company generated a profit in excess of $1 million on sales of $7.6 million. The sales number represented an improvement of 24% from the year prior. As quickly as the market bid up shares, the rug was pulled out as sellers emerged. Shares now trade below $2. Investors might have been spooked by the company’s admission that future buying might not be similar to the impressive quarter announced.
That said, Pro-Dex is working hard to diversify its customer base. To the extent they are successful, this stock will rally back to more than $3 per share – and then some.

5 Health Care Penny Stocks to Buy in 2012 -

Theragenics

If the name Theragenics (NYSE:TGX) sounds familiar, you  likely heard of this stock via its heavily advertised prostate cancer treatment program. TheraSeed is an FDA-approved medical device helping to diversify this 30-year-old medical device company. Earlier this year, the $58 million market cap company received a takeover bid that would have valued Theragenics at $74 million.
Shares soared on the news of the bid to more than $2 per share, but the eventual rejection of the offer has resulted in shares drifting lower. You can buy the stock today for $1.70 per share. As acceptance of its prostate treatment gains momentum, look for TGX to soar higher.

5 Health Care Penny Stocks to Buy in 2012 -

Bioanalytical Systems

It doesn’t take much to move a health care penny stock significantly higher. On Wednesday, shares of Bioanalytical Systems (NASDAQ:BASI) gained 5% on a 9 cent-per-share move in stock price. At the end of last year, BASI spiked to $3.98 per share, hitting a 52-week high. Shares have been sliding lower since and now trade for $1.88.
The company is in the business of providing contract-based research and development in the biotechnology industry. The tiny $9 million market cap company stands to benefit from the increasing research activity in this critical area of health care. As more barriers to research are removed, this stock should climb higher. It certainly is worthy of a speculation at this low price.

Top Railroad Stocks To Buy For 2013

Railroads evoke different images or memories for each of us. For some, it is the whistle in the middle of the night. For others, travel to exotic places on the Orient Express. In the United States, the business of railroads is to haul goods across our fair land. The money losing enterprise of people moving is left to the government.
In 2009, the railroad freight industry generated $49 billion in revenue, down due to the recession from $63 billion in 2008. Seven Class I railroad systems account for 90 percent of the industry’s total. In 2009, in addition to the seven Class I freight railroad systems – systems with annual operating revenue of $378.8 million or more – operating in the United States, there were 23 regional railroads and over 500 local railroads.
In 2009, the major rail-carried commodities (in terms of ton-miles) included coal (42%), intermodal traffic (trailers and containers on flatcars) (14%), farm products (predominantly grain and soybeans) (11%), and chemical products (10%).
Railroad stocks are closely tied to the overall economy. During the recession they suffered considerable drops in revenue and income. It was during this time that Warren Buffet famously bought Burlington Northern Santa Fe. As the economy gains strength, these companies will prosper.

Top Railroad Stocks To Buy For 2013: WMS Industries Inc. (WMS)

WMS Industries Inc. engages in the design, manufacture, and distribution of gaming machines, and video lottery terminals (VLTs) for customers in gaming jurisdictions worldwide. The company offers video gaming machines, mechanical reel gaming machines, and video poker gaming machines under Bluebird, Bluebird2, and Twinstar brand names. It also sells replacement parts, conversion kits, amusement-with-prize gaming machines, and used gaming machines, as well as equipment manufactured under original equipment manufacturing agreements to casinos and other licensed gaming machine operators. In addition, the company involves in licensing its gaming themes and other intellectual property to third parties; and leasing of gaming machines and VLTs to casinos and other licensed gaming machine operators. Further, it engages in gaming operations business that include providing participation games, such as wide-area progressive participation games under the brand names, such as MONOPOLY GRAND HOTEL, BIG EVENT, CLINT EASTWOOD, POWERBALL, TOP GUN, THE WIZARD OF OZ, TIME MACHINE, Reel em In Compete To Win, and JOHN WAYNE; local-area progressive participation games under the Jackpot Party Progressive, Life of Luxury, GREEN ACRES, THE DUKES OF HAZZARD, and HAPPY DAYS brands; stand-alone participation games under the MONOPOLY and PRESS YOUR LUCK brands; casino-owned daily fee games; leased for-sale games; and centrally determined systems. The company was formerly known as Williams Electronics, Inc. WMS Industries Inc. was founded in 1946 and is headquartered in Waukegan, Illinois.Advisors’ Opinion:

• By Beacon Equity At 2011-9-22WMS Industries Inc. (NYSE: WMS) is down 17.17% to $30.00 on volume of 5.92 million shares. It set a new 52-week low of $29.85 early in the session. The slot-machine manufacturer late Monday warned of lower-than-expected results for the third quarter. (NYSE:WMS), (WMS)

Top Railroad Stocks To Buy For 2013:Enbridge Inc (ENB)

Enbridge Inc. engages in the transportation and distribution of crude oil and natural gas primarily in Canada and the United States. Its Liquids Pipelines segment operates common carrier and contract crude oil, natural gas liquids (NGLs), and refined products pipelines and terminals. The company?s Gas Distribution segment distributes natural gas to residential, commercial, and industrial customers primarily in central and eastern Ontario, northern New York State, Quebec, and New Brunswick. Enbridge?s Gas Pipelines, Processing and Energy Services segment invests in natural gas pipelines, processing and green energy projects, and commodity marketing businesses, as well as performs commodity storage, transport, and supply management services. Its Sponsored Investments segment transports crude oil and other liquid hydrocarbons through common carrier and feeder pipelines, as well as transports, gathers, processes, and markets natural gas and NGLs; operates a crude oil and liquids pipeline and gathering system; and owns a 50% interest in the Canadian portion of Alliance Pipeline and partial interests in various green energy investments. The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998. Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.Advisors’ Opinion:

• By Louis Navellier At 2011-11-17Enbridge Inc. (NYSE:ENB) is an energy transportation and distribution company separated into six segments: Liquids Pipelines, Gas Distribution, Gas Pipelines, Processing and Energy Services, Sponsored Investments and Corporate. Enbridge stock has gained 13% in 2011.

Top Railroad Stocks To Buy For 2013: Middlesex Water Company (MSEX)

Middlesex Water Company, together with its subsidiaries, owns and operates regulated water utility and wastewater systems in New Jersey, Delaware, and Pennsylvania. It engages in collecting, treating, distributing, and selling water for domestic, commercial, municipal, industrial, and fire protection purposes. The company also operates water and wastewater systems under contract on behalf of municipal and private clients, as well as provides water, water treatment, pumping services, and wastewater services. In addition, it provides a water service line, as well as various maintenance programs that cover parts, material, and labor required to repair or replace specific elements of the customer?s water service lines, and customer shut-off valve and/or sewer lateral in the event of a failure. The company provides water services to approximately 60,000 retail customers primarily in central New Jersey; 34,000 retail customers in New Castle, Kent, and Sussex Counties, Delaware; 6,000 customers in Kent and Sussex Counties; and 120 retail customers in the Township of Shohola, Pike County, Pennsylvania, as well as offers wastewater services to approximately 1,900 residential retail customers in Delaware. Middlesex Water Company was founded in 1897 and is headquartered in Iselin, New Jersey.
Advisors’ Opinion:

• By Sherry Jim At 2011-10-21Hero Honda Motors Ltd is a successful joint venture between India’s Hero Group and Japanese Honda Motors Company. This progressive company is not only the world’s single largest two wheeler company but also a model joint venture company worldwide. Hero Honda in India has managed to achieve indigenization of over 95 percent, a Honda record worldwide.
  Over the years, the Company has received its share of accolades, including the National Productivity Council’s Award (1990-91), and the Economic Times – Harvard Business School Association of India Award, overtaking 200 contenders. If an investor wants his money to be safe and at the same time grow, it is wise to buy Hero Honda shares.

Top Railroad Stocks To Buy For 2013: Hitachi Ltd. (HIT)

Hitachi, Ltd. manufactures and sells electronic and electrical products primarily in Asia, North America, and Europe. Its Information & Telecommunication Systems segment provides systems integration, outsourcing services, software, disk array subsystems, servers, mainframes, telecommunications equipment, and ATMs. The company?s Power Systems segment offers thermal, nuclear, hydroelectric, and wind power generation systems. Its Social Infrastructure & Industrial Systems segment provides industrial machinery and plants, elevators, escalators, and railway vehicles and systems. The company?s Electronic Systems & Equipment segment offers semiconductor and LCD manufacturing equipment, test and measurement equipment, medical electronics equipment, power tools, and electronic parts manufacturing systems. Its Construction Machinery segment provides hydraulic excavators, wheel loaders, and mining dump trucks. The company?s High Functional Materials & Components segment offers wires and cables, copper products, semiconductor and display-related materials, circuit boards and materials, specialty steels, magnetic materials and components, and casting components and materials. Its Automotive Systems segment provides engine management systems, electric power train systems, drive control systems, and car information systems. Hitachi?s Components & Devices segment offers HDDs, LCDs, information storage media, and batteries. Its Digital Media & Consumer Products segment provides optical disk drives, flat-panel TVs, LCD projectors, mobile phones, room air conditioners, refrigerators, washing machines, and air-conditioning equipment. The company?s Financial Services segment offers leasing services and loan guarantees. Its Others segment provides logistics and property management services. The company serves industrial companies, financial institutions, utilities, governments, and individual customers. Hitachi was founded in 1910 and is headquartered in Tokyo, Japan.

Top Railroad Stocks To Buy For 2013: China Metro-Rural Holdings Limited (CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.Advisors’ Opinion:

• By Wyatt Research Staff At 2011-8-30The stock moved significantly higher in mid-January and traded in a fairly tight range ever since. However, that could change soon. China’s agricultural exports to Japan will grow if radiation continues to seep into the food chain.
  China exported $593 million worth of agricultural goods to Japan last year.

Top Railroad Stocks To Buy For 2013: Formula Systems (1985) Ltd. (FORTY)

Formula Systems (1985) Ltd., through its subsidiaries, operates as an information technology (IT) solutions and services company worldwide. Its Software Services segment provides software solutions and services, including the development of customer software systems; customization of software developed to provide a response to customers’ requirements; systems assimilation; offshore and domestic services primarily for software developments and quality assurance, and software testing; and integration of various components. It also supplies infrastructure solutions for computer and communication systems, as well as sells hardware products; and operates technological training and qualification centers, which provide professional courses for hi-tech personnel, training and assimilation of computer systems, applications courses, professional training, soft-skills training, and training for capital market operations. The company?s Proprietary Software Products segment develops, markets, sells, and supports application platform, and business and process integration solutions, including uniPaas Application Platform, an application platform that supports various deployment models; and iBOLT Business and Process Integration Suite that provides business integration and process management solutions with a focus on enterprise applications. It also provides consulting and software development project management, maintenance, technical support, and training services; and telecom infrastructure technologies, cargo handling, and installation service. In addition, this segment offers software solutions for the insurance industry comprising Sapiens INSIGH, a suite of business software solutions that helps insurance carriers adapt to the insurance marketplace; IT services; and outsourcing services. Formula Systems (1985) Ltd. was founded in 1985 and is headquartered in Or Yehuda, Israel. As of November 25, 2010, Formula Systems (1985) Ltd. operates as a subsidiary of Asseco Poland SA.Advisors’ Opinion:

• By Vita At 2011-8-26FORTY is an Israel-based software and IT company. Recently, they have been on a tear with first quarter profits soaring 42%. This past year the stock has soared, but don’t expect this trend to stop anytime soon. With a P/E ratio of 12, this stock has become a clear “BUY.” The 10% dividend it pays out is not bad either.

Top Stocks to Invest in 2012 - ETF Alternatives for Last Week’s Hot Stocks

Until Warren Buffett sent his annual letter to shareholders Saturday, the highlight for stocks last week was the S&P 500 hitting its highest level since June 2008. In an otherwise slow week, investors had something to talk about. Here at InvestorPlace.com, several stocks were on the minds of our writers. In my weekly roundup, I’ll look at some ETF alternatives.
Beginning the week, crime was on Lawrence Meyers’ mind. On Feb. 20, he pointed out that Top Stocks to Invest in 2012 - Corrections Corporation of America (NYSE:CXW), the largest private prison company in the nation, is really a real estate business that happens to also run prisons. Hedge fund manager Bill Ackman owned a big position in CXW until the middle of 2011, when he moved into Top Stocks to Invest in 2012 - J.C. Penney (NYSE:JCP), likely because of the hiring of Ron Johnson, Apple‘s (NASDAQ:AAPL) former head of retail, around the same time.
Investors who like what they see at Corrections Corporation of America might consider two exchange-traded funds in its place. The first is Top Stocks to Invest in 2012 - First Trust’s Industrials/Producer Durables AlphaDEX Fund (NYSE:FXR), which takes the top stocks from the Russell 1000 index that exhibit both growth and value factors. Corrections Corporation of America has a 0.99% weighting and is one of 103 stocks in the portfolio. With an expense ratio of 0.70% and an annual turnover of more than 100%, the fund is expensive to own and not very tax efficient.
A second idea is the Rydex S&P MidCap 400 Equal Weight ETF (NYSE:EWMD), which unlike the quant fund earlier, has 400 equal-weighted stocks that are rebalanced quarterly and reconstituted annually. Although Corrections Corporation of America’s weighting is only 0.24%, its expense ratio is 43% cheaper at 0.40%. Long-term I like the Rydex fund because equal-weighted funds tend to do better than cap-weighted funds and quant funds are simply too complicated for average investors.
On Feb. 21, Tom Taulli was talking up Top Stocks to Invest in 2012 - Groupon‘s (NASDAQ:GRPN) acquisition strategy. The daily-deal site raised $700 million in its December IPO and is busily spending some of that stash in an effort to improve its technology relative to LinkedIn (NYSE:LNKD) and others. I’ve never been a fan of Groupon’s business model, but those who are will likely be interested in the Global X Social Media Index ETF (NASDAQ:SOCL), which invests in all the big names in social media, including Groupon at 3% of the portfolio.
I had previously recommended SOCL on Feb. 13 as a good alternative to Zynga (NASDAQ:ZNGA), which accounts for 4.49% of the fund. For social media, it’s the only game in town.
InvestorPlace.com editor Jeff Reeves was on Boston’s WRKO AM 680 on Feb. 22, extolling the virtues of Top Stocks to Invest in 2012 - Caterpillar (NYSE:CAT), suggesting that the maker of construction and mining equipment is a good long-term play based on its business in emerging markets and an economy that continues to recover. Back in November I picked Joy Global (NYSE:JOY) over Caterpillar as the better stock to own. After the way Caterpillar manhandled its Electro-Motive employees in London, Ontario, I’m confident I made the right choice despite short-term results indicating otherwise.
However, if you must own this labor despot, a better alternative would be to buy the Industrial Select Sector SPDR Fund (NYSE:XLI), which gives you ownership of some of this country’s biggest industrial companies, including Caterpillar at 5.67% of the portfolio. The fund has almost $4 billion in assets, its expense ratio is cheap at 0.18% and it has provided good long-term performance. Eventually, all stocks revert to the mean, and Caterpillar is due.
Kellogg‘s (NYSE:K) recent acquisition of Pringles from Procter & Gamble (NYSE:PG) for $2.7 billion made Jeff Reeves take notice on Feb. 23. It turns out P&G had a Plan B if its original deal with Top Stocks to Invest in 2012 - Diamond Foods (NASDAQ:DMND) fell apart, which it did.
Kellogg suddenly finds itself in second place in the snack-food business. I like Kellogg as a stock, but you have to wonder about the integration process given the quality-control issues the food giant has faced in the past couple of years.
Consumer-staples stocks have done well in recent years. A good defensive position that also gives you a piece of Kellogg would be to buy the Top Stocks to Invest in 2012 -Consumer Staples Select SPDR Fund (NYSE:XLP), which has an annual expense ratio of 0.18%. It has 44 holdings, including the maker of Special K at 1.25% of the portfolio. Long term, you won’t find many funds more predictable.
Jim Woods wrapped up the week on Feb. 24 talking about 24 companies that increased their quarterly dividends. The rise that most caught my attention was that of Herbalife (NYSE:HLF), which bumped its dividend by 50%, to $0.30 quarterly. With share repurchases outweighing dividend payments by 300% in the past three years, this was a good opportunity to provide shareholders with a more tangible reward.
Despite the increase, HLF’s yield is still below 2%. Consumer Staples Select is the obvious choice, but it doesn’t hold Herbalife. Instead, go for the Vanguard Consumer Staples ETF (NYSE:VDC), which has a small HLF weighting (less than 1%), but an SEC yield of 2.69%, giving you better income and diversification.

The Best Stocks to Invest in 2012 - 9 Insurance Stocks That Aren’t'Sure Things'

For the time being I’ve willed myself away from the financial industry as its problems still outweigh any benefit for any investor’s portfolio. And, once again, I have for you a group of struggling insurance companies who I’ve put on my sell list for a number of fundamental reasons.
I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures.
Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research.
The Best Stocks to Invest in 2012 -The Best Stocks to Invest in 2012 -American International Group (NYSE:AIG) is an international insurance company that works with customers in more than 130 countries. In the last year, AIG stock has dropped nearly 34%. AIG stock gets an “F” for sales growth, an “F” for earnings momentum, an “F” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and an “F” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of AIG stock.
The Best Stocks to Invest in 2012 -Genworth Financial (NYSE:GNW) provides insurance, wealth management, investment and financial solutions. GNW is nearly 31% since last February. GNW stock gets an “F” for sales growth, an “F” for operating margin growth, an “F” for earnings growth, an “F” for its ability to exceed the consensus earnings estimates on Wall Street, a “D” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GNW stock.
Hartford Financial Services Group (NYSE:HIG) is an insurance and financial services company consisting of 52 mutual funds. In the last 12 months, HIG stock has dipped 30%. HIG stock gets an “F” for sales growth, a “D” for operating margin growth, an “F” for earnings growth, an “F” for earnings momentum, an “F” for its ability to exceed the consensus earnings estimates on Wall Street, an “F” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of HIG stock.
The Best Stocks to Invest in 2012 -Lincoln National (NYSE:LNC) owns multiple insurance and retirement businesses. Despite gains by the broader markets, LNC stock is down almost 22% in the last year. LNC stock gets a “D” for sales growth, a “D” for earnings growth and a “D” for earnings momentum in my Portfolio Grader tool. For more information, view my complete analysis of LNC stock.
The Best Stocks to Invest in 2012 -Manulife Financial (NYSE:MFC) is a Canada-based financial services group operating in 21 countries. Since last February, MFC stock has declined 37%. MFC stock gets an “F” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of MFC stock.
The Best Stocks to Invest in 2012 -Old Republic International (NYSE:ORI) is involved entirely with insurance underwriting. ORI stock has dipped 14% in the last year. ORI stock gets an “F” for operating margin growth, an “F” for cash flow and an “F” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ORI stock.
The Best Stocks to Invest in 2012 -Principal Financial Group (NYSE:PFG) provides its customers with retirement savings, investment and insurance products and services. While the broader markets have posted gains, PFG is down 20% in the last year. PFG stock gets an “F” for sales growth, a “D” for earnings growth, a “D” for earnings momentum and a “D” for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of PFG stock.
The Best Stocks to Invest in 2012 -Unum Group (NYSE:UNM) owns numerous insurance companies in the U.S. and U.K., and has posted a loss of 13% in the last 12 months. UNM stock gets a “D” for sales growth, and a “D” for the magnitude in which earnings projections have increased over the past month in my Portfolio Grader tool. For more information, view my complete analysis of UNM stock.
The Best Stocks to Invest in 2012 -XL Group (NYSE:XL) works with industrial, commercial and, professional firms, as well as insurance companies and other enterprises. XL rounds out the list with a loss of 11% in the last year. XL stock gets a “D” for sales growth, a “D” for operating margin growth, a “D” for earnings growth, an “F” for its ability to exceed the consensus earnings estimates on Wall Street, an “F” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of XL stock.

5 Best Breakout Retail Stocks To Invest for February in 2012

For months, investors have been preparing for an all-out meltdown in the markets as the problems in Europe have grown. While there haven’t been any all-clear signals from the continent, investors are starting to figure out that the market may be able to march higher despite the ongoing concerns. As a result, stocks started February where they left off in January.

Our research shows that the retail sector tends to outperform the market more than twofold when a recovery is under way. That makes sense as improvements in the economy result in better consumer sentiment, which results in more spending, which ultimately drives the retail sector higher.

Looking at the last five years of returns, the SPDR S&P Retail ETF (NYSE:XRT) has had a tendency to outperform the 5 Best Breakout Retail Stocks To Invest for February in 2012 - SPDR S&P 500 ETF (NYSE:SPY) in February. For the month, XRT posted positive returns four out of five years, while the SPY was only able to move higher in two of the past five years. The table below displays the returns for the past five years for both ETFs.

February Performance

Year	SPDR S&P 500 ETF (% CHANGE)	SPDR S&P Retail ETF (% CHANGE)
2007	-2.0	0.1
2008	-2.6	-6.7
2009	-11.4	0.7
2010	3.1	7.5
2011	3.4	5.8

We’re expecting the retail sector to hammer the rest of the market this February since the group has a great advantage over other sectors: As of the close of January, the XRT has the highest percentage of companies breaking through to new 12-month highs. As we know, new highs always attract investors, making the retail sector and XRT shares a target for outperformance this month.

Here are the details: As of January’s close, 21% of the companies that make up the XRT were breaking through to new 12-month highs. To put that into perspective, only 9% of S&P 500 companies and just 14% of the recently hot Nasdaq 100 companies can say the same. We like the odds that the market will flock to these breakout stocks, so which ones appear ready to roll even higher in February?

5 Best Breakout Retail Stocks To Invest for February in 2012 - Advance Auto Parts (NYSE:AAP): Auto-parts companies such as Advance, Autozone (NYSE:AZO) and O’Reilly Automotive (NASDAQ:ORLY) have been on a tear as the do-it-yourselfers roll up their sleeves to work on their cars. We like all of these companies to outperform the market in February despite the high short interest and low analyst ranks on AAP. (Only 22% of the analysts covering the stock have it ranked a buy.) If that wasn’t enough, short sellers have been piling on their bearish positions. With a short-interest ratio of nearly 8, the stock is ripe for a short covering rally. This stock has more upside potential since the AAP bears will start to capitulate and turn into buyers.

5 Best Breakout Retail Stocks To Invest for February in 2012 - Dollar General (NYSE:DG) and Dollar Tree (NASDAQ:DLTR). Discounters such as Dollar General and Dollar Tree continue to attract shoppers to their stores as consumers look to stock their shelves for less. While the economy might be performing better, we don’t expect shoppers to abandon their frugal ways, which means these stores will stay busy. Lately, the shorts have been increasing their positions here, calling a top for these stocks. History tells us that this means there’s more room for these stocks to run higher.

5 Best Breakout Retail Stocks To Invest for February in 2012 - Ross Stores (NASDAQ:ROST). Following the discount theme is Ross Stores — the chain sells discounted apparel, accessories, footwear and home fashions. The company is expected to announce earnings growth of more than 20% (year-over-year) in March, which should get the analyst community’s attention. Right now, only 42% of the analysts covering the stock have ranked it a “buy.” The Street loves to recommend stocks that are making new highs.

Wal-Mart Stores (NYSE:WMT). Wal-Mart recently got some of its swagger back — the retail giant is starting to outperform the market again. For years, WMT was the poster child for “overloved stocks” as over 90% of the analyst community continued to rank it a “buy” as it underperformed. Now, WMT is breaking through to a new 12-month high — and only 46% of analysts rank the stock a “buy.” The crowd will start upgrading the stock soon as it continues its move higher, driving even more buying power toward the shares. In other words, it’s still early for WMT.