3 Railroad Stocks To Invest That Keep Rolling in 2012

Freight railroads are at a crossing. While the volume of freight rail’s core staples — coking coal, grain and scrap metal — is down significantly compared to last year, volume of “intermodal” freight — shipments that travel in containers or trailers and can be handled by rail, ship or truck — is on the rise.
And that growth is likely to help some publicly traded freight rail companies deliver healthy returns to shareholders.

Microsoft’s Big Win in the Government Cloud

It’s no secret that railroads have had to contend with some adversity so far this year: Total carload volume is down more than 3% compared to the same period last year. Cheap natural gas, regulatory pressure and a warmer-than-usual winter drove down coal volume, which accounts for more than 35% of all rail shipments. Grain exports are sluggish due to the mild drought in the nation’s heartland and rising international production.
But intermodal volume is 4% higher today than it was a year ago. And if you remove coal and grain from the equation, freight rail volume rose by nearly 8% in the first quarter of this year, according to the Association of American Railroads (AAR).
Intermodal is becoming an increasingly attractive option for shippers because of tight trucking capacity. Railroads can transport a ton of freight more than 480 miles on a single gallon of diesel, making them more efficient than other transport modes.
As a result, overall freight rail revenue rose by more than 15% in 2011, and rails also gained market share from truckers — especially in intermodal, according to a Council of Supply Chain Management Professionals report released this week.
For investors, the best railroad stocks are those that are well prepared to take advantage of growing intermodal traffic. Here are three freight railroads that are poised to keep on rolling:

3 Railroad Stocks To Invest That Keep Rolling in 2012 - CSX 

CSX (NYSE:CSX) would have taken a huge hit on its first-quarter earnings released in April because coal volume dropped 14%. Instead, intermodal shipments soared, accounting for 37% of total volume in the first quarter. That made all the difference: CSX earnings beat analysts’ estimates as first-quarter profits rose 14%, to 43 cents a share, on revenue of nearly $3 billion versus expectations of 35 cents a share.
CSX is trading near $22, around 25% above its 52-week low last October. With a market cap of nearly $23 billion, CSX has a price-to-earnings growth (PEG) ratio of 0.8, indicating the stock may be undervalued, and a fairly low forward P/E of around 11. It also has a current dividend yield of 2.6%.
Bottom Line: CSX has a lot going for it in intermodal. It has been cashing in on increased conversion of highway intermodal shipments to rail. Growth in its UMAX interline container program and new international volume bode well.
Buy CSX with a price target of $27.

3 Railroad Stocks To Invest That Keep Rolling in 2012 -

Norfolk Southern

Norfolk Southern’s (NYSE:NSC) domestic intermodal operations helped offset weakness in coal shipments. First-quarter intermodal revenue rose 9%, reflecting a volume increase of 5%. NSC beat the Street on both the top and bottom lines: Earnings rose 26% in the first quarter to $1.23 a share; revenue grew 6% to $2.8 billion.
NSC is trading around $68, about 18% above its 52-week low last October. With a market cap of about $22 billion, NSC has a PEG ratio of 0.8, indicating the stock could be undervalued, and a forward P/E a little over 10, which is at the low end of the freight rail sector. It also has a current dividend yield of nearly 2.8%.
Bottom Line: The company’s intermodal terminal in Franklin County, Pa., is scheduled to open later this year, and the intermodal facility in Birmingham, Ala., that began construction last year are big bets on that business.
I like NSC at a price target of $85.

3 Railroad Stocks To Invest That Keep Rolling in 2012 -

Union Pacific

Union Pacific (NYSE:UNP) expanded its intermodal revenue by 15% in the first quarter, reflecting a small increase in volume and higher revenue per container. It’s also using innovations in technology such as smartphone apps to make gate reservations at intermodal facilities. In April, Union Pacific reported a 35% increase in first-quarter earnings to $1.79 a share, on revenue that rose 14% to $5.1 billion, beating analysts’ estimates on the top and bottom lines.
UNP is trading around $113, nearly 46% above its 52-week low last October. With a market cap of nearly $54 billion, UNP is the largest freight railroad in the U.S. by that measure. It has a PEG ratio of 1, indicating the stock is fairly valued, and a forward P/E a little over 12, which is the midrange for the freight rail sector. It also has a current dividend yield of 2.1%.

Top 10 Dow Dividend Stocks to Invest in 2012

The eurozone debt crisisstill is in focus, investors remain jittery and the stock market has given up nearly all of its gains made this year.
That all adds up to a “risk-off” environment where many investors are turning to stable stocks with big brands, bulletproof balance sheets and reliable income generation via quarterly dividends. This is especially true for retirement investors who are equally concerned with capital preservation as they are with tapping into a rally — if and when one ever transpires.
When you are thinking in terms of retirement decades down the road, dividends can add up in a hurry. Consider this: If you buy a stock with a 4% dividend, you will double your money in about 18 years even if the stock goes nowhere. That’s peace of mind that many long-term investors thirst for right now.
So if you’re looking for the biggest brands with the biggest-yielding stocks, here’s a list of the top 10 dividend stocks in the Dow Jones Industrial Average to help you out:

Top 10 Dow Dividend Stocks to Invest in 2012 #10: DuPont

Current Dividend Yield: 3.5%
Performance So Far in 2012: +8%
E.I. du Pont de Nemours & Company (NYSE:DD), or simply DuPont, is a chemicals giant made famous by products including Tyvek house wrap, Teflon non-stick coatings and stretchy Lycra synthetic fabric.
DuPont isn’t quite as sexy as a Silicon Valley tech shop but clearly is an innovator with a long history of great product creation. DD stock lagged the market in 2011 with an 8% decline, but has topped the Dow’s 3.5% gains considerably with its 8% returns so far in 2012.
Revenue is up year-over-year for the 10th consecutive quarter after strong earnings in April, and DuPont’s EPS have gone from $1.92 for fiscal 2009 to an impressive $3.68 in fiscal 2011 — almost double — and are forecast to jump another 15% in fiscal 2012.
Dividend investors in it for the long term know the staying power of DuPont. The company has paid dividends for more than 100 years and is a stable industrial giant that isn’t going anywhere. At the end of April after DuPont’s earnings, it added another 2 cents to its quarterly payday, too, proving this industrial company is not just preserving dividends — but improving them.

Top 10 Dow Dividend Stocks to Invest in 2012 #9: General Electric

Current Dividend Yield: 3.5%
Performance So Far in 2012: +10%
General Electric (NYSE:GE) might forever be tarnished in the minds of some dividend investors after slashing its payout by two-thirds during the financial crisis. While the quarterly dividend remains about half of what it was — at just 17 cents vs. 31 before the market meltdown — the recent history is worth noting.
Consider that in April 2011, GE paid 14 cents each quarter. By the summer it was paying 15 cents, and by January 2012 it was up to 17 cents a quarter. Now we just received news that General Electric’s finance arm received the green light to share some of its wealth with shareholders, too. Specifically, regulators signed off on a special dividend from GE Capital along with permission for the group to resume paying regular dividends later this year.
GE admittedly has its troubles. We saw rather lackluster General Electric earnings in February, but a stronger showing in April as GE reported its fiscal first-quarter earnings. With 40% of its revenue coming from GE Aviation, it’s hard for the company to break out without big airplane orders or defense contracts.
But dividend investors should be encouraged by the GE Capital dividend news. With a current 3.5% yield, this stock is steadily climbing back into the ranks of Wall Street’s best income stocks. A nice market-beating gain since Jan. 1 also is a plus.

Top 10 Dow Dividend Stocks to Invest in 2012

#8: JPMorgan Chase

Current Dividend Yield: 3.5%
Performance So Far in 2012: +4%
JPMorgan Chase (NYSE:JPM) has been making a lot of headlines lately, and for all the wrong reasons. May’s disastrous $2 billion JPM trading loss has resulted in golden-child banker Jamie Dimon receiving a summons to Capitol Hill to take a whipping from Congress and supporters of the Volcker Rule.
But the stock still is hanging tough, boasts a great yield and is the largest American bank by assets.
On the dividend side, JPM was granted Federal Reserve permission to raise its dividend in March, even as competitors like Citigroup (NYSE:C) and Bank of America (NYSE:BAC) have failed to improve their payouts beyond a nominal penny per quarter in dividends. You can bet that Ben Bernanke and others at the Fed wouldn’t have allowed JPM to boost its payout if it wasn’t sustainable. And on the profits side, JPM still is tracking earnings growth of over 20% this fiscal year even after the trading loss.
If you’re a long-term investor, you might want to take advantage of the recent turmoil in JPMorgan Chase to get into a nice dividend stock at a decent price.

Top 10 Dow Dividend Stocks to Invest in 2012

#7: Procter & Gamble

Current Dividend Yield: 3.6%
Performance So Far in 2012: -5%
Procter & Gamble (NYSE:PG) hasn’t been very pleasing to shareholders so far in 2012. Yes, the yield is nice — but the stock has been slumping, and at the end of April, P&G earnings showed a disappointing outlook for the rest of the year.
But Procter & Gamble CEO Bob McDonald is looking overseas to prop up the balance sheet amid rising commodity costs, frugal U.S. consumers and performance that lags rivals like Colgate-Palmolive (NYSE:CL). And let’s face it: Even though the consumer products giant is slightly down, it is hardly out. P&G is going nowhere thanks to brands like Gillette, Pampers and Duracell that provide reliable revenue across rough economic times — and thus reliable dividend payments, too.
Yes, PG stock hasn’t seen much growth, and that is a concern. But you can’t get more defensive than consumer staples, so dividend investors wary of a summer downturn might want to turn to Procter & Gamble if they are planning on staying fully invested in the stock market right now.

Top 10 Dow Dividend Stocks to Invest in 2012

#6 Chevron

Current Dividend Yield: 3.6%
Performance So Far in 2012: -4%
Worried about expensive gas? Don’t be. Crude oil has rolled back slightly from its 2012 high of around $111 a barrel — into the low $80s as of this writing — and is challenging lows not seen since October of last year.
So it’s no surprise that amid weaker prices and pretty flat demand, Chevron (NYSE:CVX) hasn’t done well lately. CVX stock actually is in the red in 2012 vs. gains for the broader market. Recent oil stock earnings show that refining continues to be a bit of a drag in the short term for Chevron and other oil majors.
But on the income side, Chevron has strength that is difficult to overlook. The company has paid dividends since 1912. It has increased its payouts twice in the last year, from 72 cents quarterly in March 2011 to 78 cents in June, then up again to 81 cents as of December 2011.
And while crude oil prices have rolled back, let’s not pretend we’re going to get back to $50 per barrel anytime soon, with geopolitical unrest in the Middle East and hungry emerging markets like China and Brazil increasing energy demand at an impressive clip despite risks of a broader economic slowdown. If you’re a dividend investor looking for a low-risk stock with a reliable revenue stream that ensures juicy payouts, Chevron certainly is worth looking into.

Top 10 Dow Dividend Stocks to Invest in 2012

#5: Johnson & Johnson

Current Dividend Yield: 3.7%
Performance So Far in 2012: Flat
Johnson & Johnson (NYSE:JNJ) has hit some headwinds in recent years over quality control, calling into question how well-run the company really is. But with a new Johnson & Johnson CEO at the helm, some are hoping that change is in the wind at JNJ. Product recalls have weighed heavily on the company, and consumers and investors alike need confidence for this health care giant to once again win their support.
One thing that never has been uncertain, however, is the dividend potential of Johnson & Johnson. JNJ has raised dividends for 49 years in a row. During the past decade, the company has managed to boost distributions by more than 12% per year — all while delivering a headline yield of about 3.7% right now.
And unlike some big pharma stocks that pay nice yields, the biggest dividend driver isn’t prescription drug offerings. While JNJ does offer some vaccines and medical products, consumer health offerings like Band-Aid and Tylenol provide its steadiest revenue stream.
Revenue admittedly has been a bit stagnant at J&J during the past few years; hence, the stock has seen some underperformance. But if you believe projections, Johnson & Johnson could see a stunning 48% jump in earnings per share for fiscal 2012 compared with fiscal 2011. Time will tell if management can hit those targets. But in the meantime, the dividend is a pretty nice hedge, even if the stock moves sideways.

Top 10 Dow Dividend Stocks to Invest in 2012

#4: Pfizer

Current Dividend Yield: 3.9%
Performance So Far in 2012: +4%
Pfizer (NYSE:PFE) outperformed the market nicely in 2011 with one of the best returns in the entire Dow Jones — 23% in gains, to be precise. While performance has cooled a bit and Pfizer was sitting on a loss earlier this year, the stock has come roaring back since February as defensive investments like health care return to favor. It’s now neck-and-neck with the broader Dow Jones Industrial Average.
Yes, long-term challenges at Pfizer are the same as the risks that persist across all of Big Pharma — looming patent expirations, challenges from generic medications and the frantic race to lock up patients in emerging markets. But the goose still is laying golden eggs for shareholders in the form of 22-cent quarterly disbursements, with dividend payments dating back to 1901.
Looking forward, the company has a decent research pipeline with some up-and-coming drugs that could rotate in to prop up revenues. Most importantly for dividend investors, the company has $29 billion in cash on the books. Even if revenue hits a hiccup across 2012 — as it did in fiscal 2011 when it slid from $67.8 billion to $67.4 billion — the cash is there to preserve this juicy dividend.

Top 10 Dow Dividend Stocks to Invest in 2012

#3: Merck

Current Dividend Yield: 4.3%
Performance So Far in 2012: +3%
Merck (NYSE:MRK) is very similar to Pfizer (NYSE:PFE) in many ways. It too faces patent expirations. It too is hoping its pipeline will step up to fill the void. And it too pays a huge dividend.
There obviously is no breakneck growth in pharmaceuticals, at least on a share appreciation basis. But the continued roll-in of the $41 billion Schering-Plough buyout from a few years ago surely will provide new opportunities for Merck. At the very least, it ensures the company won’t fade away.
And like its cohort Pfizer, MRK is sitting on a huge war chest. Some $13.5 billion in cash and $1.4 billion in short-term investments keeps this pick pretty safe when it comes to writing the checks.
Dividends have been paid at Merck since 1935, and last year the payout was increased about 10%, from 38 cents a quarter to 42 cents. You might not find massive share appreciation in this stock, but you certainly will find stability.

Top 10 Dow Dividend Stocks to Invest in 2012

#2: Verizon

Current Dividend Yield: 4.6%
Performance So Far in 2012: +9%
Verizon (NYSE:VZ) remains the leading wireless telecom provider in the U.S. by subscriptions and gets 50% of its revenue from wireless subscribers. The company also is one of the top high-speed Internet providers in America via its FiOS fiber optic network. As the world becomes increasingly wired, it’s more important than ever for companies like Verizon to be involved with the operations of businesses and the lives of regular Americans.
This provides a very stable revenue stream that accounts for huge dividends. Like many low-risk dividend stocks, this is a double-edged sword because there might not be any huge growth opportunities for the entrenched telecom. But strong cash flow generation and the lack of any real competition from anyone other than AT&T (NYSE:T) means this telecom stock is a stalwart that’s here to stay.
The telecom giant recently made waves with a decision to kill almost all voice plans and move to a “Share Everything” data model that will allow users to get up to 10 gadgets wired — including laptops, tablets and smartphones — on the same plan. The goal is to get more folks hooked up with more gadgets and using more data (which VZ can charge more for, of course).
And if this mobile move doesn’t move the stock? Well, you could do worse than a 4.6% annual return via dividends.

Top 10 Dow Dividend Stocks to Invest in 2012

#1: AT&T

Current Dividend Yield: 5%
Performance So Far in 2012: +18%
One of the biggest stories in 2011, as previously mentioned, was that AT&T (NYSE:T) tried to leapfrog rival Verizon (NYSE:VZ) in the wireless market via a buyout of T-Mobile. But regulators ran interference, and AT&T abandoned its bid. Don’t think that means the biggest dividend payer in the Dow Jones Industrial Average should be cut loose from your portfolio, though. With a dividend yield of about 5%, this is a heck of an income play.
The story is the same for AT&T as Verizon, where a strong balance sheet and its entrenched status are offset by the lack of growth and the highly regulated nature of the telecom sector (case in point: the squashed T-Mobile bid). AT&T delivered pretty strong first-quarter earnings, though, so it’s not like this company is completely stagnant.
Admittedly, these U.S. telecoms aren’t “growthy” and won’t deliver massive share appreciation. But if you’re looking for a big dividend payer that will keep throwing off cash for decades, AT&T might be your best bet in the whole Dow Jones Industrial Average.

Best Vanguard Mutual Funds for Your 401k

When it comes to 401k investing, investors have a lot of options for retirement. But with 20 new funds on the table in 2010 (most have already launched, but a few have been temporarily delayed), free trading in Vanguard ETFs, and drastically reduced minimums for its lower-cost Admiral shares, Vanguard’s in the business to win over investors. And they’re going to keep picking off the competition, one-by-one, using their heft and low costs.
Yet, while all this will help Vanguard gather assets and reduce costs for you and me, the longer the list of funds gets, the more confusing it can be to pick the winners from the losers.
To make matters worse, the major drawback of investing for retirement in a 401(k) is that your options are limited to the funds your plan administrators make available. Typically, they choose middle-of-the-road funds deemed safe enough to keep employees from losing their shirts — and the administrators from losing their jobs.

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So unless you use your 401k plan’s brokerage option, you aren’t likely to be able to invest in any Vanguard fund you like (and even the brokerage service may not have access to all Vanguard funds). In the case of Vanguard Precious Metals & Mining Fund (VGPMX), that’s a good thing. The fund is incredibly volatile, with a maximum cumulative loss of 69.8% in the most recent bear market versus 50.9% for Vanguard Total Stock Market (VTSMX) and 51.0% for Vanguard 500 Index (VFINX). So much for gold funds being a safe haven.
On the other hand, you also aren’t likely to have access to some funds that you probably should have an allocation to, such as the Vanguard Emerging Markets Index Fund (VEIEX), which I highly recommend for 401(k) investors (not for all of your money, of course, but a 5% portion).
In fact, I believe that as the global economy continues healing, having an allocation to emerging markets will become a virtual requirement for investors with long-range objectives, like retirement. That’s why I’d suggest you ask your plan administrator to add this fund to the mix of choices your company includes in its 401k plan. (I’m also doubtful your 401(k) gives you access to Vanguard’s terrific Health Care fund, which in itself offers access to the growing demand for medical products and services in the emerging world.)
Here are several other Vanguard funds I’d like to see in your 401k portfolio. Use them if they’re available to you. But if they’re not, try requesting them. You might need to enlist your colleagues to convince your benefits department to add them. But remember, it’s your retirement that’s at stake. Your 401k plan should be serving you, not covering them.

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PRIMECAP is #1

As a retirement savings vehicle, a 401(k) is inherently geared toward the long term. But when planning for retirement, you don’t just want to save your money, you want it to grow. Consider that even at a retirement age of 60 to 65, you could live another 30 years or more. Invest too conservatively, and you could outlive your money. To prevent this, my first choice for your 401(k) is a trio of Vanguard funds run by the redoubtable team at PRIMECAP Management: PRIMECAP (VPMCX), PRIMECAP Core (VPCCX) and Capital Opportunity (VHCOX).
Unfortunately, there’s a hitch: All three funds are now closed to new investors outside of established 401(k) plans. However, they may be available to you. If so, consider yourself lucky, and don’t hesitate to give a big slug of money to this group of managers who take a value-oriented eye to buying growth stocks. Their funds are the largest single component of my retirement and nonretirement accounts, as well as those of my wife and kids.

Balancing risk and return since 1929

If the PRIMECAP funds are closed to you, Vanguard Wellington (VWELX) is an excellent choice for the core around which you build the rest of your 401(k) portfolio. Since its inception in July 1929, it has held out the promise of strong relative returns in good and bad markets by focusing on one very important investment discipline: Diversification.
As a balanced fund, approximately 60% to 70% of Wellington’s assets are in high-quality blue-chip stocks, and 30% to 40% are in top-notch investment-grade government and corporate bonds. You can easily get the entire bond exposure you need in your 401(k) portfolio from this fund. The fund also has the flexibility to invest as much as 20% of its equity assets in foreign securities, an important part of a diversified portfolio.

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What I like most about Wellington is its excellent management team. Wellington manager Ed Bousa took the lead management position at Wellington in 2003 with nary a change in the fund’s strong and consistent gait, and very minor changes in the portfolio, which is precisely what I had expected, as he had worked with former manager Ernst Von Metzsch for so long.
Bonus: By investing through your 401(k), you can avoid the hefty $10,000 minimum initial investment required to get into Wellington on your own. If you decide to follow this strategy, I’d suggest putting about 40% of your money in Wellington.
More about the best and top stocks in

Growthing Small Caps Stocks For 2012

Early-stage companies spend many years planning for the day when everything clicks. For a number of them, 2012 could be the year when all their hard work pays off. So I decided to look at companies set to see sales rise more than 200% next year.
Most of the companies in the table below each already sport market values of more than $400 million, so they're no mere wallflowers. Clearly, they already hold great promise for some investors. If they can actually deliver on the strong growth expected of them, shares may surge.

Stay away from these stocks...
Of course, you should take some of these forecasts with a grain of salt. Alimera Sciences (Nasdaq: ALIM) has a promising device (an insertable tube that delivers steroids directly into the eye for those suffering from diabetes-related blindness), but the Food and Drug Administration (FDA) has been dragging its feet on approval.

Some think the company's product, Illuvien, may never get the green light and those lofty sales forecasts will never come to fruition. Still others think Illuvien will be approved and see annual sales approach $300 million in coming years. If that happens, shares would likely double or triple from today's levels.
Growthing Small Caps Stocks For 2012: Tesla Motors (Nasdaq: TSLA)
In a similar vein, Tesla Motors (Nasdaq: TSLA) will have to sell a lot of cars in 2012 to meet expectations of scorching sales growth. Yet competition in the electric car market is getting awfully crowded. Privately-held Fisker Automotive is aiming directly for Tesla at the high end of the market with a new model to be released this month, and firms such as Porsche, BMW and Mercedes-Benz are ramping up electric offerings in coming years as well. I'm in the camp that feels Tesla will be unable to sell enough cars to become profitable.
And legal wrangling may impede sales growth in 2011 for SIGA Technologies (Nasdaq: SIGA), which as I recently noted, may be forced to share a large government contract with Pharmathene (NYSE: PIP).
Consider these stocks instead...
Yet a pair of companies in the health field clearly have the makings of robust growth in 2012 -- and beyond.
Little-known Pacific Biosciences (Nasdaq: PACB) has developed a technology platform that can rapidly sequence strands of DNA at a lower cost than rivals. That was the promise held by rival Illumina (Nasdaq: ILMN), which is now worth more than $8 billion, more than eight times the value placed on Pacific Biosciences. To be sure, Illumina spent the first half of the past decade falling short of sales forecasts before sales finally took off in recent years. So there's still a chance Pacific Biosciences struggles to meet aggressive growth expectations in the near-term.
Pacific Biosciences has secured pre-orders for $24 million worth of equipment and has a decent shot of hitting 2011 sales forecasts of $38 million. But to meet the 2012 sales forecast of $139 million, the sales force needs to start moving at a more rapid clip. Longer-term, annual sales could exceed $500 million (rival Illumina had $666 million in sales last year), at which point, per-share profits could exceed $3 or $4 and shares would be twice as high as they are now. When that happens, though, is an open question.
Growthing Small Caps Stocks For 2012: Savient Pharma (Nasdaq: SVNT)
In a similar vein, Savient Pharma (Nasdaq: SVNT) may be looking at a very large market opportunity with its gout drug, Krystexxa, which helps alleviate gout-related pain and inflammation in patients who don't respond to other forms of treatment. Savient would have preferred to be acquired. When the company announced in late October that no takers were found, shares quickly plunged from $21 to $12 and now sit around $10.
Yet it's too soon to write Savient off. The company's team of 60 sales people just started selling Krystexxa at the end of February, and investors will start to more clearly see the drug's demand in coming quarters.
The real promise for Savient lays in the nature of gout. Cases of the arthritic condition have been rising quickly, particularly among U.S. males, likely due to a corresponding increase in the current spikes in diabetes and obesity in America. Once a patient starts suffering from gout, the disease can wield painful, but short-lived episodes. However, gout attacks have a tendency to become more frequent and painful with time and it is considered to be an irreversible condition once it reaches later stages.
Savient's Krystexxa has proven more effective in treating extreme gout pain than any other drug on the market, leading analysts at Global Hunter Securities to predict annual sales may eventually exceed $500 million. (As a note of caution, there are other promising gout treatments undergoing clinical testing, and if they reach the market, Krystexxa's potential opportunity would shrink.)
Savient is unlikely to be profitable before 2013, so patience will be required. Then again, the company still may end up in the hands of a suitor long before then and deliver big share price gains in the process.

10 Best Industrial Stocks Poised to Break Out in 2012

As the broader market rally continues to bring individual stocks near their highs of earlier last summer, the list of potential breakout candidates grows. The energy and technology sectors both have been fertile ground in which to find stocks on the verge of breaking out to new high ground, and now the industrial sector is setting up as a source of opportunity — providing, of course, that the broader market can hold up.
One way to play this is simply to use the Select Sector Industrial SPDR (NYSE:XLI) ETF, which closed Wednesday 5.9% short of its 52-week high of $38.98. But for those who prefer the higher-beta potential of individual stocks, here are a number of names to consider:

10 Best Industrial Stocks Poised to Break Out in 2012 - FedEx

NYSE:FDX
Wednesday’s close: $94.15
Breakout level: $98.66
10 Best Industrial Stocks Poised to Break Out in 2012 - Percent move needed for breakout: 4.8%

This is the fourth time in two years that FDX has entered the $95-$100 range. While a break above $98.66 still would leave the stock well short of its all-time high above $120, set in 2007, note that United Parcel Service (NYSE:UPS) already has moved out to a new high off of a similar formation as FDX. This bodes well for FedEx if the broader market holds up.

10 Best Industrial Stocks Poised to Break Out in 2012 - Canadian National Railway

NYSE:CNI
Wednesday’s close: $77.53
Breakout level: $81.26
Percent move needed for breakout: 4.8%
 Similar to FedEx, a number of CNI’s industry peers have broken out to new highs in recent months, among them Union Pacific (NYSE:UNP), Canadian Pacific Railway (NYSE:CP) and Kansas City Southern (NYSE:KSU).

10 Best Industrial Stocks Poised to Break Out in 2012 - Caterpillar

NYSE:CAT
Wednesday’s close: $112.53
Breakout level: $116.55
Percent move needed for breakout: 3.6%

 10 Best Industrial Stocks Poised to Break Out in 2012 - BorgWarner

NYSE:BWA
Wednesday’s close: $80.58
Breakout level: $82.28
Percent move needed for breakout: 2.1%

10 Best Industrial Stocks Poised to Break Out in 2012 -  Fiserv

Click to EnlargeNASDAQ:FISV
Wednesday’s close: $64.65
Breakout level: $66.06
Percent move needed for breakout: 2.2%

10 Best Industrial Stocks Poised to Break Out in 2012 - Praxair

NYSE:PX
Wednesday’s close: $107.66
Breakout level: $111.74
Percent move needed for breakout: 3.8%

10 Best Industrial Stocks Poised to Break Out in 2012 - Heico

NYSE:HEI
Wednesday’s close: $58.43
Breakout level: $61.97
Percent move needed for breakout: 6.1%

Eagle Materials

NYSE:EXP
Wednesday’s close: $33.27
Breakout level: $33.66
Percent move needed for breakout: 1.2%

Acuity Brands

NYSE:AYI
Wednesday’s close: $59.23
Breakout level: $61.45
Percent move needed for breakout: 3.7%
 10 Best Industrial Stocks Poised to Break Out in 2012 - Crane

NYSE:CR
Wednesday’s close: $49.06
Breakout level: $52.38
Percent move needed for breakout: 6.8%
 While these 10 charts look to be the most compelling, four others also have the potential for a breakout to new highs: Honeywell International (NYSE:HON), which is 5.6% away from breaking out; Ball Corp. (NYSE:BLL), 2.3%; Wabtec (NYSE:WAB), 8.2%; and Carlisle Cos. (NYSE:CSL), 8.1%.

5 Foreign Dividend Stocks Strongholds to Buy in 2012

In case you hadn’t noticed, it’s rough out there. Europe still is quite the mess. China, while still growing, is looking a little suspect these days, and growth in much of the rest of the developing world — particularly in commodity-exporting countries like Brazil — depend on Chinese growth that might not materialize if present trends continue.
If you’re depending purely on growth to meet your investment goals, you might end up be sorely disappointed. Prudent investors instead should turn to something a little more reliable: income.
Traditional income investments like bonds and CDs pay virtually nothing in interest these days, but it still is possible to get a decent cash income return in the world’s stock markets. Let’s take a look at these five foreign dividend strongholds:

5 Foreign Dividend Stocks Strongholds to Buy in 2012 - China Mobile

I’ll start with a Chinese company that should continue to prosper regardless of whether the Chinese economy makes a hard landing: China Mobile (NYSE:CHL).
China Mobile is the largest cellular phone provider in China. In a given year, its growth in new subscribers is greater than entire population of the United Kingdom. Again, that’s just the new subscribers; it says nothing of the 600 million existing subscribers.
China Mobile pays a safe 3.6% in dividends — substantially more than what the 10-year Treasury pays — and CHL’s dividend is almost certain to grow in the years ahead.
Even during hard economic times, consumers are unlikely to surrender their mobile phones; many would sooner leave their electric bill unpaid and sit in the dark than be unconnected in a connected world.

5 Foreign Dividend Stocks Strongholds to Buy in 2012 -

Telefonica

This brings me to my next recommendation, Spain’s Telefonica (NYSE:TEF). Telefonica has been a favorite of the Sizemore Investment Letter for years, and for good reason. In addition to being one of Europe’s leaders in mobile telecom, Telefonica is in a two-dog race with Carlos Slim’s America Movil (NASDAQ:AMOV) for dominance of the fast-growing Latin American market. At just 7 times expected 2012 earnings, Telefonica is one of the cheapest companies in the world. It also pays a spectacular 9.8% in dividends.

5 Foreign Dividend Stocks Strongholds to Buy in 2012 -

Nestle

Next on the list is Swiss confectionery giant Nestle (PINK:NSRGY). Nestle is one of the safest and most stable companies in the world. In addition to selling staple products — everything from packaged food to instant coffee — that consumers will buy in good times or bad, it has a conservative and well-respected management team based in Switzerland.
While there might be no such thing as a true “buy and forget” investment, Nestle might be the closest I’ve ever seen. At a current dividend yield of 3.4%, Nestle represents an incredible value.

5 Foreign Dividend Stocks Strongholds to Buy in 2012 -

Unilever

I would say much the same about Anglo-Dutch consumer products company Unilever (NYSE:UL). This stodgy old maker of packaged foods and personal care products happens to get the majority of its sales from fast-growing emerging markets and expects to get 70% of its revenues from emerging markets within a few years. Unilever pays a dividend of 3.7% and has a long history of raising its dividend over time.
Like Nestle, Unilever is about as close as you can get to a “buy and forget” investment.

5 Foreign Dividend Stocks Strongholds to Buy in 2012 -

Philip Morris International

My last recommendation — Philip Morris International (NYSE:PM) — is not technically a foreign stock, as it is based in the United States. Still, as the entirety of its revenues come from overseas, I think it’s fair to lump Philip Morris in with the rest of these solid international picks.
While smoking is in terminal decline in the United States, it still is quite popular in many emerging markets, from which PM gets roughly half of its sales. As incomes rise, local consumers are trading up from cheaper local brands to premium foreign brands like Marlboro.
I’ve written before about the virtues of investing in vice, and I continue to view tobacco stocks as excellent long-term investments. With a dividend of 3.8% and growing, Philip Morris International is a stock you don’t want to miss.
We might yet see robust growth in 2012, dear reader. I certainly hope we do; after a volatile year like 2011, it feels good to be in a bull market again. But then, that growth might well prove to be fleeting. Given the macro risks coming out of Europe and beyond, it is a mistake to depend too heavily on growth that might or might not come to pass.
The good news is that with a properly constructed dividend stock portfolio, you can earn a respectable return in either event.

On January 10, 2012, in Investment Strategy, Stock Market, by David

The euro zone is falling apart, and although the US economy is improving, we are still far off from a full recovery.  So the question becomes, are there any good stocks to buy now in a climate like this?  The answer is yes!  Whether you are in a bull market, bear market or in limbo, which is what we are in now, you can make money in the stock market.  As this tumultuous year winds down, here are some stock investment ideas for 2012.
Many investors are sitting on the sidelines right now figuring out the next phase in our global economy.  They are sitting on cash, US Treasuries or gold.  These are all super defensive plays.
Then there are the risk takers who are trying to find deals.  Among the sectors where you might find undervalued stocks are in the financial sector and technology.  Banks have been struggling since the 2008 financial crisis.  They have not fully recovered.  There is also nervousness about the exposure to European debt and new financial regulations that are coming down the pike.  But for the true believers, they are confident that banks will recover and thrive in the long run, making these good stocks to buy now while they’re cheap.  This includes all the bankers right now taking stock options in lieu of cash bonuses.  If these insiders didn’t believe it, they wouldn’t be taking their bonuses in stock.
Defensive Stocks – Strong Now, Strong Later
Many experts and analysts are recommending defensive stocks as good stocks to invest in right now.  Defensive sectors would be things like healthcare, consumer staples and utilities.  Many are also advocating that you should invest in large multinational corporations that have a strong presence in the emerging markets.  This will give you financial strength to weather any downturns, but also offer opportunities to leverage the massive growth in developing economies.
You generally think of defensive stocks as those that you invest in when there is a downturn in the economy.  But I like the following defensive stocks because I think they will continue to be strong even when the economy is no longer in a recession.  The thing is that if you do strict valuations, it looks like the entire stock market is undervalued.  So when the economy recovers, it should cause a rising tide that raises all ships, including defensive stocks.  They are one of those win-win plays.
Johnson & Johnson (JNJ) - I really like JNJ.  They are the largest health care company in the world, in an industry that is ever growing.  They have extremely strong brands for consumer products all around the world.  They also have a strong business on the medical technology end as well.  As the world grays with increasing numbers of the elderly, a massive and emerging middle class in the emerging markets and just the nature of the health care industry in general, I think JNJ is very well positioned to take advantage of significant growth over the next decade.  They are also lending money to European banks.  That means they have a lot of cash.
Exxon Mobil (XOM) - Again, another company that will win either way.  This is the largest company by market cap on the US stock market.  That makes them a safe haven asset when the economy is going south.  But in addition to their defensive qualities, they also have great long term prospects for growth.  They are always finding new reserves of oil.  But they are also investing in other energy sources as well like natural gas.  I think they will be a huge player in the natural gas power generation business in years to come.  I’m bullish here because I think gas will become a major player in the power generation industry in the US.  It burns cleaner than coal and safer than nuclear.
Growth Stocks – Speculation Play
If you are a speculator and looking for high growth stocks to buy, here are the ones you want to watch.  Remember, with the potential for high returns also comes equal downside risks.  Especially right now, only use money you can afford to lose on these stocks.
Google (GOOG) – This stock has been going up higher and higher for at least the last 10 years.  They don’t seem to be letting up.  On the fundamental side, their market share is growing as well as the market itself.  They are starting to get into the social networking space as well with the recent release of Google+.  The thing you want to watch for is their operational costs.  It’s been rising very quickly due mostly to hiring costs.  I don’t foresee that stabilizing at any point.  Just make sure the earnings are growing faster than rising costs.
Apple Inc (AAPL) – This is another technology stock with great potential.  With each new release of an iPhone or iPad device, the stock continues to climb.  They have the “wow” factor down and I don’t see this changing any time soon.  Their new server farm in Charlotte, NC just went online as iCloud.  I think this is going to make a huge long term difference.  But in the short term, you have very regular releases of new versions of their flashy devices.  As long as they keep that up, the stock will continue to rise.  Although Steve Jobs is no longer here with us, he probably left a road map for Apple to follow for the next 3-5 years.  The question will be whether Tim Cook will be able to execute on those plans.
Netflix Inc (NFLX) – I’m not as crazy about this one.  Their stock price has risen considerably for sure.  Even the great speculator George Soros is said to be holding this stock.  But I think the growth is going to be short-lived.  Publishers don’t like them and that will only hurt their licensing costs.  In addition, their business model of streaming movies and TV shows has relatively low barriers to entry.  I think if Google buys Hulu as it’s rumored to be, I suspect Netflix might feel their final blow as a speculative growth play.  I would put this in the category of stocks to not buy right now or one to look for short selling opportunities.
Stocks to Buy in a Recovery
Cyclical stocks are ones you want to invest in during a time of economic growth.  The ideal time to get into these stocks is right when a recession is turning into a sustained recovery.
Ford (F) - I like Ford for several reasons.  First of all, I respect this company.  They were the only ones not to receive a government bailout.  They stuck it out on their own and survived.  Now they are thriving.  But I need a little more than respect to want to invest in it.  They have a strong presence and penetration into emerging markets.  They have been able to adapt to the new environment they find themselves in with low cost, smaller vehicles.  They have the pulse of the emerging market consumer.  In addition, and this is very important to me, their financials are very strong.
JC Penny (JCP) – JC Penny is what they call a consumer discretionary stock.  These are companies that do well during good economic times because they sell stuff that people don’t absolutely need.  I like JC Penny in particular because they have not been doing well.  Yes, that’s right.  I like them because of their failure.  That is because they are turning their failure into an opportunity and the best success stories start out that way.  In their failure, they have hired a master retailer to become it’s next CEO.  Ron Johnson has been the brains behind Apple’s spectacular success with their retail stores.  He also has a design background, which you can see when you walk into an Apple store.  If you wonder what his potential contributions could be, just walk into one of their stores and get the Apple experience.  Johnson is an innovator and I think he’s going to lead a retailing revolution.
Emerging Market Stocks
The emerging markets are growing at an incredible pace.  Most retail investors do not have access or the information necessary to access these markets.  You can invest in them indirectly with stocks that have a lot of business interest in these regions.  These stocks are a bit risky, especially if we start to see a slowdown or even a bubble pop in countries like China, India, Brazil, Russia and Southeast Asia.
Caterpillar – This company makes heavy equipment like backhoes and diggers for the construction industry.  This sector has taken a hit in the US and the Western world, but is booming in other emerging economies.  As long as there is this building boom in developing countries, you will see companies like Caterpillar do well.  The only thing to watch out for is if and when a potential building bubble in China bursts.  Then you might see it screech to a halt temporarily.
IBM – I like IBM here because they are providing the hardware and IT infrastructure necessary to equip these economies with the technology to grow.  Their server business will only get better as these economies develop.  In addition, they are providing the hardware for cloud computing, which is the next mega-trend in technology.
Yum Brands! – This used to be the restaurant arm of Pepsi Co.  They were spun off a few years ago.  You would recognize the brands that they own like Pizza Hut, KFC and Taco Bell.  They also do A&P Restaurants as well.  That is why you are seeing combo restaurants in many places now.
They are actually doing quite well.  They are also well-positioned to take China by storm.  If you know any Asians, you know that many of them love Kentucky Fried Chicken.  I’m not exaggerating.  Just think about how much you can scale this demand in a place like China.  As the middle class grows in that country, there will be tons of opportunities for this brand to expand.  KFC is doing even better than McDonald’s in China.
Index Fund Investing
Everyone is trying to beat the market by finding the best stocks to invest in.  From professional money managers, to institutional investors on Wall Street, to the retail individual investor on main street, to those looking to skim on penny stock investing, everyone is trying to out-do the stock market.  But the harsh reality is that a few actually end up finding the top stocks to invest in.
Research studies are starting to recognize that only a handful of investors actually beat the market consistently over time.  So if a professional money manager for a large mutual fund management company can’t consistently beat the market, an individual investor should be wary of stock picking for himself.
That is where index fund investing comes in.  You don’t have to spend hours to find good stocks to invest in.  Instead, you let the market pick them.
The reason why index investing is highly recommended by so many smart investors, Warren Buffett being one of them, is that over time, they will almost surely give you a return.  Now instead of beating the market, you are trying to grow with it.  Historically, the market has always grown over time.
Penny Stock Investing
If you are looking for hot stock tips, you will probably run into many penny stock investing opportunities.  These are abundant, especially online.  They tout really cheap stocks and how you can get in on the ground floor.
Historically, many frauds have come from penny stock investments.  They are hard to catch or even see on the radar because they are so small.  The SEC has a hard enough time watching the big blue chips let alone tiny IPO’s.  In addition, many of them are based outside of the US, which also helps them fly under the radar.
All I have to say here is to be careful of penny stock investing.  The only smart way to do it is if you know the company personally or can walk down to their operations and see with your own eyes that it is a legitimate company.
The other problem is that liquidity is horrible on these stocks.  That means you won’t get the optimal entry and exit prices on these stocks.

Top 5 Emerging Growth Stocks to Buy for January in 2012

If you have cash to invest this month, I highly recommend these five below. Here they are, in no particular order:

Taiwan-based Silicon Motion Technology (NASDAQ:SIMO) has its hand in lots of hot markets and is a big player in flash memory storage — flash memory cards, USB flash drives, card readers and solid-state hard drives. In fact, most of the NAND flash and next-generation flash products on the market — whether produced by Samsung (PINK:SSNLF), SanDisk (NASDAQ:SNDK), Toshiba, Micron (NASDAQ:MU) or Intel (NASDAQ:INTC) — are supported by Silicon Motion controllers. Silicon Motion also produces multimedia chips including embedded graphics processors, image processors and TV tuners. Lastly, it has been increasingly focused on controllers for smartphones, tablets and notebook PCs, as well as wireless transceivers for 4G LTE smartphones and tablets.

In the third quarter, Silicon Motion’s sales rose 25% to $63.2 million compared with $50.5 million in the second quarter. Looking forward, the analyst community is expecting annual fourth-quarter sales growth of 51% and 88.9% earnings growth. In the past three months, the analyst community has revised their consensus earnings estimate 32% higher — a phenomenon that typically precedes blowout earnings surprises.

Top 5 Emerging Growth Stocks to Buy for January in 2012 - Questor Pharmaceuticals (NASDAQ:QCOR) likes a challenge. As a specialist of difficult-to-treat central nervous system disorders, the company has been particularly successful with its multiple sclerosis treatment, H.P. Acthar Gel. The company also makes Doral, which is used for the treatment of insomnia. In the massive biotechnology industry, Questcor is top-notch in terms of earnings per share growth and return on equity.

For the fourth quarter, the analyst community is expecting 127.4% annual sales growth and 265.7% earnings growth of 38 cents per share. In the past three months, the analyst community has revised their consensus earnings estimate 32.6% higher. Typically, such positive analyst earnings revisions precede future earnings surprises.


Top 5 Emerging Growth Stocks to Buy for January in 2012 -Hansen Natural (NASDAQ:HANS) is the mastermind behind Monster, a dominant energy drink in the U.S. Looking at a can of Monster Energy drink, the flashy staple of sleep-deprived college students, one wouldn’t think that the company’s humble beginnings stem back to just one father and three sons working with a juicer in Southern California. In fact, although Hansen sells supercharged drinks like Monster and Java Monster, most of its drink roster is actually very wholesome. For example, it has 30 real fruit and spice soda flavors, a number of immune system-boosting drinks, vitamin waters and an array of teas and lemonades.

In recent quarters, Hansen Natural has reported “monster” sales and profit growth. Third-quarter sales jumped 24% from $381.5 million last year to $474.7 million this quarter. Over the same period, net income also rose 24% to $82.4 million, or 88 cents per share. Plus, speculation is heating up that Monster might be an acquisition target by Red Bull or one of the major soft drink companies. With Red Bull’s recent decision to pull out of NASCAR as a sponsor, a “monster” acquisition might be just what the energy drink maker needs to capture additional U.S. market share.


Top 5 Emerging Growth Stocks to Buy for January in 2012 - Spectrum Pharmaceuticals Inc. (NASDAQ:SPPI) is familiar pharmaceutical company I once discussed in the Top 5 Emerging Growth Stocks for December. Spectrum specializes in oncology — the treatment of cancer — and currently has two cancer treatments on the market: Fusilev, a treatment for advanced colon cancer, and Zevalin, a treatment for a type of lymphoma.

But what really excites me about this company is what it has in its pipeline: Spectrum has more than 10 drugs in either late-stage development or development! This includes Apaziquone, a treatment for bladder cancer, Belinostat, another lymphoma treatment and Ozarelix, a treatment of prostate cancer. This is a midsize biotechnology company already at the top of the industry — in terms of return on equity — and is about to experience blowout growth.


Top 5 Emerging Growth Stocks to Buy for January in 2012 - Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ) has two flagship drugs — Xyrem, the only narcolepsy treatment approved by the World Anti-Doping Agency, and Luvox CR, its obsessive compulsive disorder treatment. But there are a number of exciting developments on the near horizon, including Jazz’s massive buyout of Dublin-based Azur Pharma Ltd., which should close within the next couple of weeks, and the company’s subsequent moving of its headquarters to Dublin. After the move, Jazz will be able to take advantage of Ireland’s competitive tax rate.

The company’s sales climbed 63.3% and earnings surged 115.6% in the third quarter, and for the fourth quarter, the analyst community is expecting 54% annual sales growth and 70.5% earnings growth. Jazz Pharmaceuticals is flush with cash and recently prepaid $33 million in long-term debt, and I’m excited to see how developments play out in the company’s next earnings release. Also, despite those who might think that Jazz Pharma’s bullish run looks tapped out, I remain optimistic.

3 Small-Cap Stocks to Buys for January in 2012

First up this month, I have CVD Equipment (NASDAQ:CVV), a manufacturer of the gear behind tomorrow’s futuristic nanotechnologies, including solar cells, electronic components, carbon nanotubes, LEDS and smart material coatings.

But what really has the company in investor headlines lately is its involvement with graphene, the thinnest and toughest material ever produced. Graphene is a one-atom-thick layer of carbon. Academics have recently figured out how to manipulate the way the material conducts electricity, a breakthrough that opens the door to its use in computers, since graphene conducts electricity 30 times faster than silicon — approaching the speed of light!

Graphene is an extraordinary material — in 2010, Andre Geim and Konstantin Novoselov won the Nobel Prize in Physics for their groundbreaking experiments with it, and there are a lot of companies, universities and industries researching it. It’s too soon to tell which of these players will be the big winner, so I want to go straight to the source and invest in the equipment that all of these players need for their research.

With the excitement about graphene and its possible uses, it’s no surprise that CVD’s order backlog has soared this year, climbing 141% in the third quarter. Sales in the third quarter rose 119.3%, to $8.8 million, compared with $4 million year-on-year. During the same period, CVD Equipment’s earnings surged 566.7%, to $1.2 million — $0.20 per share. The analyst community was expecting earnings of $0.11 per share, so the company posted a whopping 81.8% earnings surprise.

For the fourth quarter, the analyst community is expecting 66.7% annual sales growth and 87.5% earnings growth. In the past three months, analysts have revised their consensus earnings estimate 30.6% higher. Of course, such positive analyst earnings revisions usually precede tremendous future earnings surprises.


3 Small-Cap Stocks to Buys for January in 2012 - Mitcham Industries (NASDAQ:MIND) is a high-tech provider of seismic equipment to the energy industry, enabling the next generation of oil-and-gas exploration.

Oil companies are increasingly finding it difficult to extract gas from traditional deposits and are being forced to look at alternative sources and methods of extraction. With viable alternative energy sources still a ways off, Mitcham’s products are going to become integral to the maintenance of our energy status quo.

The company leases seismic equipment to energy companies that allows them to get a picture of what’s happening below ground. Mitcham also manufactures and sells seismic gear under the well-known Seamap brand name.

Mitcham’s manufacturing-and-leasing business model provides superior margins compared with other segments of the seismic industry. In the third quarter, sales rose 40%, to $28 million, compared with $20 million in the same quarter a year ago. During the same period, earnings soared 642.9%, to $6.8 million, or $0.52 per share. The analyst community was expecting earnings of $0.22 per share, so the company posted a whopping 136.4% earnings surprise.

In the third quarter, Mitcham says, there was strong demand from Latin America and companies tapping the gas-holding shale formations of the U.S. Looking forward, Mitcham predicts strong results in Russia and Canada this winter. In addition, the company says it’s encouraged by the number of inquiries and orders for long-term work. For the fourth quarter, the analyst community is expecting 47.8% annual sales growth and 135.9% earnings growth.

3 Small-Cap Stocks to Buys for January in 2012 - Plains All American Pipeline (NYSE:PAA) is cashing in big time on the transportation and storage of crude oil, refined products and natural gas in the U.S. and Canada. And in December, the company announced five asset-rich strategic acquisitions totaling $2.3 billion.

Its blockbuster deal was snapping up British Petroleum’s (NYSE:BP) natural-gas liquids business in Canada for $1.67 billion in cash, which will expand Plains All American’s Canadian footprint and provide the capacity to increase its U.S. operations. The location of the BP pipelines and plants allows for processing of gas from new U.S. formations, including the Bakken formation in North Dakota and the Marcellus formation in Pennsylvania. In total, the acquisition includes about 2,500 miles of pipelines, 21 million barrels of LNG capacity and seven gas-processing plants. The deal is expected to close in the first half of this year.

The company also announced four “bolt-on” acquisitions for about $620 million, including a South Texas crude-oil and condensate-gathering system, a Canadian trucking operation, a multiple-product storage facility in Yorktown, Va., and a pipeline in the Permian Basin.

Plains All American has an extremely attractive 5.4% dividend, and as a Master Limited Partnership, it can allow for pass-through income, eliminating the “double taxation” that is generally applied to corporations. Looking forward to the fourth quarter, the analyst community is expecting annual sales growth of 38.3% and earnings growth of 59.3%. In the past three months, the analyst community has revised its consensus earnings estimate 20.6% higher.
3 Small-Cap Stocks to Buys for January in 2012 - 

Top 5 best Blue-Chip Stocks to invest for January in 2012

This month, I’m shaking up the Top 5 list. Although I’m keeping two Top 5 veterans on the list, three blue-chip companies are also poised to pop this month, and I want to make sure that you’re ready to capitalize on this opportunity.

I want to have a smooth ride going into the new year, so this month’s Top 5 is made up of all conservative stocks that thrive during the late winter months. Be sure to add some of these premium stocks before they take off.

Top 5 Best Blue-Chip Stocks to invest for January in 2012:Alexion Pharmaceuticals

Alexion Pharmaceuticals LogoAlexion Pharmaceuticals (NASDAQ:ALXN) continues its winning streak this month as the No. 1 Top 5 stock on my buy list. In early December, the company enjoyed a major windfall as European Union regulators approved a new use for Soliris, the company’s only approved drug. Soliris will now treat atypical Hemolytic-uremic syndrome, a severe blood disorder that became an epidemic in Germany in May 2011. This treatment, which will launch in the first half of the new year, will be a boon to the company because Alexion gets the benefit of a new customer base with relatively minor up-front costs.

Also, the company is headed toward another stunning earnings announcement on Feb. 6. Analysts currently expect Alexion to grow sales by 41.7% and earnings by 30.8%. In addition, the analyst community has revised its earnings-per-share estimates 13% higher in the past three months, which suggests another hefty earnings surprise for Q4 2011.
Top 5 Best Blue-Chip Stocks to invest for January in 2012: Reynolds American

Reynolds American (NYSE: RAI)Reynolds American (NYSE:RAI) is the ultimate value stock. After releasing Q3 earnings results in late October, the tobacco giant increased its already-hefty dividend by 5.7%. A few weeks later, company leadership authorized a massive $2.5 billion stock buyback program to be carried out over the next two-and-a-half years. And signs are pointing to tremendous Q4 operating results when the company releases earnings on Jan. 30.

Analysts currently expect the company to grow earnings by 15%, a significantly higher rate than the 9.9% forecast for the rest of the tobacco industry. Also, in the past month, analysts have revised their earnings estimates 3% higher, whereas they have decreased their earnings estimates for many of its competitors — analyst earnings revisions like this typically precede earnings surprises.

Top 5 Best Blue-Chip Stocks to invest for January in 2012: McDonald’s

MCDMcDonald’s (NYSE:MCD) is an institution in the fast-food industry, but this company is doing anything but sitting on its laurels. In the past month, this company has switched out one of its major egg suppliers and announced a $400 million plan to upgrade its restaurants with flat-screen TVs, padded seats and wooden tables.

All of these developments have clearly paid off — management recently announced that McDonald’s global same-store sales boomed 7.4% in November. Even in the U.S., sales rose 6.5% — according to management, the McCafe Peppermint Mocha succeeded in bringing in customers looking for an inexpensive holiday treat. In Europe, McDonald’s also brought in a 6.5% gain. All of these figures easily topped the 4.2% sales growth forecast by Street analysts. McDonald’s is living proof that an “old dog” can learn new tricks, and I’m excited to see what other changes this company announces.
Top 5 Best Blue-Chip Stocks to invest for January in 2012:Dominion Resources

dominion resourcesDominion Resources (NYSE:D) is the perfect winter-weather stock. Its customers in Virginia and North Carolina are cranking up the heat as the temperature continues to drop, which means increased profits for its Dominion Virginia Power segment. This makes conditions ripe for stunning Q4 earnings. One of the reasons I added this company to my buy list in December is because this company is incredibly resilient. In Q3, Dominion weathered not only Hurricane Irene, but also a 5.9-magnitude earthquake that struck its North Anna nuclear power station. Despite the combined $87 million cost from these natural disasters, the company still managed to grow earnings more than expected.

Looking forward, management expects higher revenues for Q4, as well as an increase in earnings per share thanks to the company’s aggressive stock buyback programs. The company doesn’t report earnings until Jan. 23, so there is plenty of time to load up on this stock in anticipation of the earnings report.
Top 5 Best Blue-Chip Stocks to invest for January in 2012: VF Corp.

VF Corp LogoIn my article “New Year’s Prediction #4: Retail, the Hottest Sector of 2012,” I mentioned I had another retail recommendation up my sleeve for 2012. With more than $9 billion in annual sales, VF Corp. (NYSE:VFC) is the world’s largest apparel company, and it’s easy to see why. The company is responsible for designing and manufacturing apparel, footwear and travel accessories for at least 20 major brands. In Q4 2011, VF Corp.’s sales rose 23% to $2.75 billion compared with $2.23 billion in Q3 2010.

Looking to Q4 2011 , the analyst community predicts 37% sales growth and 32% earnings growth. In the past three months, the analyst community has revised their consensus earnings estimate 7.6% higher. Typically, like with Reynolds American, positive earnings estimates precede future earnings surprises. VF Corp. is anticipated to benefit immensely from strong consumer spending this holiday season. This company also has the fourth-highest dividend yield in the Apparel industry, weighing in at 2.1%.

Top 10 Dow Dividend Stocks to invest in 2012

It was a crazy year for every component of the Dow Jones Industrial Average. The best Dow stock was McDonald’s (NYSE:MCD), up 31%, and the worst was Bank of America (NYSE:BAC), down almost 60%. But despite those outliers, the broader index moved only slightly upward to tally a 6% gain on the year.

Of course, dividend investors got an even better return if they played the right stocks with the right yields. Many Dow stocks pay an annual dividend worth 3% of their current share price — not a bad return on your investment in this choppy market! And some pay dividends as high as 6%.

So which companies make the best income investments in the Dow? Here’s a list of the top 10 Dow dividend stocks so you can see for yourself:

Top 10 Dow Dividend Stocks to invest in 2012#10: Kraft, Chevron, JPMorgan and Microsoft

There is a very crowded pack in the Dow when it comes to stocks with a yield of around 3%, give or take a few hundredths of a percentage point. The companies include:

* Kraft (NYSE:KFT) — the consumer staples powerhouse locked in gains of 19% in 2011.
* Chevron (NYSE:CVX) — the oil powerhouse climbed 17% in 2011.
* JPMorgan Chase (NYSE:JPM) — a loss of 22% sounds ugly, but not compared to many of its big banking peers.
* Microsoft (NASDAQ:MSFT) — a lackluster 7% loss in 2011 held back this top tech stock.

Rather than cherry-pick a company (Kraft is the nominal winner with a 3.09% yield as of Friday’s close) only to have the list reorder in a few days, it seems best to list them all — though personally I find the presence of JPMorgan most noteworthy, as financial stocks have only recently been returning to the ranks of dividend payers.

Top 10 Dow Dividend Stocks to invest in 2012#9: Procter & Gamble

Procter & Gamble (NYSE:PG)Current Dividend Yield: 3.1%
2011 Performance: +4%

Procter & Gamble (NYSE:PG) has pretty much tracked the broader Dow Jones Industrial Average this year, squeaking out a small gain of around 4% for all of 2011. The consumer products giant has relied on the power of P&G brands like Gillette, Pampers and Duracell to provide reliable revenue — and reliable dividend payments to shareholders. Revenue and profits haven’t been growing at a breakneck pace, to be sure, but there’s something to be said for stability in a volatile market. The company has paid dividends since 1891.

Top 10 Dow Dividend Stocks to invest in 2012#8: Intel

Intel INTCCurrent Dividend Yield: 3.4%
2011 Performance: +16%

Semiconductor giant Intel (NASDAQ:INTC) might not seem like the place to look for big dividends. However, its 3.4% yield easily ranks it in the top 10 Dow dividend stocks. You also might think INTC isn’t doing so well right now, considering weak consumer and business spending. Wrong on that count, too. The chipmaker has posted big gains in 2011 thanks to impressive baseline demand for high-tech items. After all, it’s not like computers are becoming less common because of the downturn — if anything, they are more crucial than ever before to boost productivity. INTC is riding eight straight quarters of year-over-year revenue growth right now.

Top 10 Dow Dividend Stocks to invest in 2012#7: Johnson & Johnson

Johnson & Johnson (NYSE:JNJ)Current Dividend Yield: 3.5%
2011 Performance: +6%

The first health care stock on the list of top 10 Dow dividend stocks is Johnson & Johnson (NYSE:JNJ) — but a few more are yet to come. The company is part-pharmaceutical giant thanks to prescription drug offerings like vaccines, and part-consumer health company thanks to products like Band-Aid and Tylenol. Revenue admittedly has been a bit stagnant at J&J during the past few years; however, earnings per share continue to improve. J&J is a sleepy play, but tracking the market for a decent gain — and a 3.6% dividend to boot — doesn’t seem like anything to sneeze at after a challenging 2011.

Top 10 Dow Dividend Stocks to invest in 2012#6: DuPont

Dupont (NYSE:DD)Current Dividend Yield: 3.6%
2011 Performance: -8%

E.I. du Pont de Nemours & Company (NYSE:DD), a.k.a. DuPont, has lagged the market so far in 2011. Dividend investors still should take note of this chemical giant, however. The 3.6% yield is one of the best in the Dow Jones Industrial Average, and DuPont could be a good long-term investment for the inevitable recovery — because even if there is a tough market for another year or two, DuPont will hang tough and pay a good dividend while you wait. As a specialty chemical company, DD provides materials for a host of products in all corners of the market. Once demand picks up, so will DD stock.

Top 10 Dow Dividend Stocks to invest in 2012#5: General Electric

General Electric GECurrent Dividend Yield: 3.8%
2011 Performance: -2%

General Electric (NYSE:GE) might forever be tarnished in the minds of some dividend investors after slashing its payout by two-thirds during the financial crisis. While the quarterly dividend remains about half of what it was — at just 17 cents vs. 31 before the market meltdown — the subsequent flop in GE stock managed to result in a very respectable yield. Revenue continues to slide for the conglomerate, which is a concern, but earnings remain robust and the dividends remain rich in relation to the stock’s current valuation.

Top 10 Dow Dividend Stocks to invest in 2012#4: Pfizer

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2011 Performance: +24%

Pfizer (NYSE:PFE) has outperformed the market nicely in 2011 with one of the best returns in the entire Dow Jones. Yes, it faces the same challenge that persists across all of Big Pharma — looming patent expirations, challenges from generic medications and the frantic race to lock up patients in emerging markets. But the company has a decent research pipeline with some up-and-coming drugs that could rotate in to prop up revenues. Most importantly for dividend investors, the company has $29 billion in cash as of its third-quarter earnings report. With a forward P/E of less than 10 even after this run, there may be more upside for Pfizer in 2012. And if the stock gains don’t blow you away, that 4% dividend is a nice benefit.

Top 10 Dow Dividend Stocks to invest in 2012#3: Merck

Merck & Co. (NYSE:MRK)Current Dividend Yield: 4.5%
2011 Performance: 5%

Merck (NYSE:MRK) is very similar to Pfizer, except for its mostly market-tracking performance in 2011. It, too, faces patent expirations and is hoping its pipeline will step up to fill the void. It, too, is trading for a bargain P/E of under 10. It, too, pays a dividend well north of 4%. A huge $41 billion buyout of rival Schering-Plough in 2009 should help provide new areas of growth, and the company has managed to post four straight year-over-year revenue beats in the quarters since Schering-Plough was integrated into operations. Throw in solid cash flow and a history of dividends since 1935, and you can understand why this stable company is a bedrock buy for many portfolios.

Top 10 Dow Dividend Stocks to invest in 2012#2: Verizon

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Of course, dividend investors got an even better return if they played the right stocks with the right yields. Many Dow stocks pay an annual dividend worth 3% of their current share price — not a bad return on your investment in this choppy market! And some pay dividends as high as 6%.

2011 Performance: +12%

Verizon (NYSE:VZ) is the leading wireless telecom provider in the U.S. by subscriptions. The company also is one of the top high-speed Internet providers in America via its FiOS fiber optic network. As the world becomes increasingly wired, it’s more important than ever before for companies like Verizon to be involved with the operations of businesses and the lives of regular Americans. This provides a very stable revenue stream that accounts for huge dividends. What’s more, Verizon’s EPS for the fiscal year are on track to tally over $2.20 — easily double the 90 cents per share earned in fiscal 2010. A target of $2.50 for fiscal 2012 shows there’s more growth to come, too.

Top 10 Dow Dividend Stocks to invest in 2012#1: AT&T

AT&T TCurrent Dividend Yield: 5.8%
2011 Performance: +3%

One of the biggest stories in 2011 was that AT&T (NYSE:T) tried to leapfrog rival Verizon in the wireless market via a buyout of T-Mobile. But regulators ran interference, and AT&T abandoned its bid. Don’t think that means the biggest dividend payer in the Dow Jones Industrial Average should be cut loose from your portfolio. With a dividend yield of about 6%, this is a heck of an income play. After all, 10-year T-Notes are around 2% — roughly a third of AT&T’s dividend yield. Red-hot growth might not be ahead, but AT&T is a stable company with a great dividend that’s not going anywhere. That’s the kind of investment many investors are impressed with after a volatile 2011.

The Most Profitable Companies Stcoks to Invest In America 2012

Looking for the best buys on the market right now? We may have the investing answer you’ve been waiting for.All stock prices are driven by profit projections, and a handful of American companies just posted impressive 2010 profits. Firms with a clear vision of how to increase value for shareholders could be a terrific buy right now. But companies without a good game plan will likely see their stock prices fall as they fritter away their earnings.
The hardest part? Learning to separate the former from the latter. Here’s a list of the most profitable companies in America, along with our prediction of which direction the stock is heading.

The Most Profitable Companies To Invest In NO.17: Citigroup (NYSE: C) – $10.6 Billion

For many years, Citigroup (NYSE: C) was the most profitable banking firm in the United States. But a series of foolish moves allowed JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) to surpass them.

To get back to the head of the pack, Citigroup is repositioning itself as a key player in fast-growing emerging economies. Indeed, Citigroup now derives more than half its revenue from abroad.

Although the bank’s turnaround is not yet complete, the story should become a lot cleaner with each passing quarter, and eventually, investors should embrace the bank as a way to hedge against a falling dollar and as a way to have greater exposure to more dynamic economies elsewhere.

The Most Profitable Companies To Invest In NO.16: ConocoPhillips (NYSE: COP) – $11.4 Billion

Despite low profit margins, ConocoPhillips (NYSE: COP) has strengths in many areas: solid stock price performance, attractive valuation levels, robust revenue growth and compelling net income growth.

And if you think oil will continue to be expensive in the future, ConocoPhilips could be the ultimate value stock. The current dividend yield is 3.4% and management has a reputation for allocating capital to shareholders in the form of dividend increases and share buybacks — all good news for investors.
Photo courtesy of wikipedia.commons.org.



The Most Profitable Companies To Invest In NO.15: Intel (Nasdaq: INTC) – $11.5 Billion

If you own a smartphone, you are an indirect customer of Intel (Nasdaq: INTC). Though they don’t manufacture or sell any smartphone components, Intel makes processors that help data center servers keep up with the demand, and the smartphone boom has been nothing but good for the company.

In addition to its profit-generating ability, Intel also has huge cash hoards. Using its cash to acquire fast-growing firms can be an effective way to boost its own growth, so look for Intel to get in on the market’s M&A activity in the coming months.
Photo courtesy of Flickr- Josh Bancroft.



The Most Profitable Companies Invest In NO.14: General Electric (NYSE: GE) – $11.6 Billion

It’s 2010 profit results are all well and good, but the historical numbers show that General Electric (NYSE: GE) has lost its way and needs a turnaround to return to the growth heyday it experienced while under the fearless leadership of Jack Welch.

GE Capital, GE’s massive finance arm, was a major profit driver under Welch, but it nearly ruined the company during the financial crisis. Back in 2007, GE Capital accounted for 55% of net income. That share fell to 13% in 2009.

Current CEO Jeffrey Immelt has a goal to limit GE Capital to no more than 40% of profits going forward, though it only recovered to 28% of profits in 2010, so it has some way to reach that level. GE will inevitably turn around its operations at some point, but there is no need for investors to wait for the company to find its way.
Photo courtesy of Flickr- Matt Millard.



The Most Profitable Companies Invest In NO.13: Coca-Cola (NYSE: KO) – $11.8 Billion

The world’s biggest soft drink maker, Coca-Cola (NYSE: KO), recently posted strong first quarter results, with a comparable net income of $6.4 million. With a powerful global distribution network, Coca-Cola products are currently sold in more than 200 countries and boast 500 different beverage brands. In the coming years, more than $20 billion will be spent to expand into emerging markets like Africa, Russia, Mexico and China.

Helping drive growth is the recent acquisition of Coca-Cola Enterprises, the company’s largest bottling unit in North America. It will now be cheaper for the company to produce and bottle smaller scale products — like the 100-calorie Coke can — to cater to calorie-conscious consumers.

Through the acquisition, Coke expects to improve business operations by better controlling product distribution so it can more quickly respond to changing market demand. As a result, Coke expects to save more than $350 million a year for the next four years. These savings should mean good news for shareholders.
Photo courtesy of Flickr: Kyle May.



The Most Profitable Companies Invest In NO.12: Wells Fargo (NYSE: WFC) – $12.4 Billion

One thing has been clear about Wells Fargo (NYSE: WFC): the San Francisco-based bank seems to have adroitly sidestepped a great deal of the potholes besetting the banking sector the past few years. It hasn’t been immune to the powerful forces of a down economy, but at least its management hasn’t been pilloried by the press (like Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS)), and it didn’t make life-threatening bad investments that led to government handouts (like Citigroup).

Restrictions put in place when the TARP program was in effect have limited the annual dividend, but banking analysts think the payout ratio will eventually rebound to 30%, implying a $1.08 dividend based on 2012 profit forecasts. As the economy improves, the dividend could move even higher, creating the impetus for a dividend yield above 4% when measured against today’s stock price.

And it certainly doesn’t hurt to have Warren Buffett as your co-investor. Buffett’s continued bullishness on the bank should be heartening to even the most bank-ophobic investors.
Photo courtesy of Flickr — Neubie.

The Most Profitable Companies Invest In NO.11: Procter & Gamble (NYSE: PG) – $12.7 Billion

After selling Pringles, Procter & Gamble (NYSE: PG) is officially out of the foods game. They are currently taking active steps to distance themselves from competition by expanding their health care brands into overseas markets, mainly in China and India.

P&G is also taking advantage of the rise in e-commerce popularity, recently entering the e-commerce market with an e-store. This new strategy has seen significant penetration in North America and Asia, where they are able to extend their reach into under-served, emerging markets.
Photo courtesy of Flickr – Brandon C.



The Most Profitable Companies Invest In NO.10: Berkshire Hathaway (NYSE: BRK) – $13.0 Billion

Warren Buffett has relayed numerous times that future growth rates at Berkshire Hathaway (NYSE: BRK-A) will fall below historical growth trends, but he still thinks there is potential for investors to earn above-average returns by investing in the stock. Just take the past two years as an example — book value grew 19.8% in 2009 and 13% in 2010.

This suggests Berkshire is still able to compound wealth at a double-digit rate going forward. And regardless of growth rates, the company is so well-managed that it’s difficult to imagine it even being unable to generate large profits for shareholders.

Last year, Berkshire hired money manager Todd Combs to help reshape the company’s $63.2 billion equity portfolio. Combs didn’t wait long to make his first big move, as Berkshire recently reported a stake in MasterCard, Inc. (NYSE: MA), valued at $54.4 million.
Photo courtesy of wikipedia.commons.org.



The Most Profitable Companies Invest In NO.9: Johnson & Johnson (NYSE: JNJ) – $13.3 Billion

Johnson & Johnson (NYSE: JNJ) has increased its dividends for the past 48 straight years, at an average rate of about 13.4% per year since 2000. If you purchased 200 shares of JNJ in 1980 (an investment of $14,600) and never added new money but just reinvested all the dividends, the position would be worth $1.15 million today. That’s a 7,868% return.

In other words, it’s like buying a house in 1980 for $146,000 that today is worth about $11.5 million. Home values didn’t appreciate anywhere near that much. That’s the power of growing dividends.
Photo courtesy of Flickr – aldinegirl87.



The Most Profitable Companies Invest In NO.8: Apple (Nasdaq: AAPL) – $14.0 Billion

There is only one large U.S. corporation that can truly be called a growth stock: Apple (Nasdaq: AAPL). The company’s performance was impressive enough that net income rose from $8.2 billion in 2009 to $14 billion in 2010.

What’s more impressive is the road ahead. Merrill Lynch predicts Apple will earn $34 billion by 2013, putting it at a close second behind ExxonMobil for the claim of America’s most profitable company.
Photo courtesy of Flickr — Bacr Aptemob.



The Most Profitable Companies Invest In NO.7: Int’l Business Machines (NYSE: IBM) – $14.8 Billion

Int’l Business Machines (NYSE: IBM), affectionately referred to as Big Blue, is a titan in the technology industry. The company generated almost $100 billion in revenue last year and is about as diversified a technology company as can be found, spanning software, services, hardware and financing.

IBM’s presense abroad makes it fantastic play in a weak dollar environment — just over one-third of sales stem from the United States, with the rest being generated in Europe, Asia and the rest of the world.
Photo courtesy of Flickr — Patrick H~.



The Most Profitable Companies Invest In NO.6: Wal-Mart Stores Inc. (NYSE: WMT) – $16.4 Billion

Despite falling same-store sales in the U.S. for two consecutive years, Wal-Mart (NYSE: WMT) posted a profit in both 2010 and Q1 of 2011. Their average U.S. shopper spent more per visit in Q1 of 2011, and their U.S. same-store sales of groceries and health and wellness items has increased for two consecutive quarters.

Wal-Mart’s domestic foot traffic is down, but international sales are soaring. Their profits have come largely from an 11.5% increase in international sales, offsetting the impact of the domestic slump with strong gains in all countries except Japan.

Wal-Mart is a well-run company that has historically provided long-term value to its stockholders, so don’t be discouraged by the domestic sales slump, they are still turning profits.
Photo courtesy of Flickr — Walmart Stores.



The Most Profitable Companies Invest In NO.5: JPMorgan Chase (NYSE: JPM) – $17.4 Billion

The entire banking sector is still wheezing back to life, so the next few years could represent a return to traditional banking profit margins. Notably, analysts’ forecasts anticipate subdued lending activity in 2011 and 2012 and, more than likely, bank profits will be meaningfully higher again in 2013 and beyond, granted the economy is truly healthy (and the housing market gets out of the sickbed).

Therefore, the opportunity to buy shares of banks like JP Morgan Chase (NYSE: JPM) while they trade for less than 10 times 2012 profits looks quite appealing. Trouble is, some investors are convinced that we haven’t seen the end of the mortgage crisis. So buying these bank stocks today certainly carries some short-term risk that more funds will need to be set aside to cover future liabilities.
Photo courtesy of David R. Tribble.



The Most Profitable Companies Invest In NO.4: Microsoft (Nasdaq: MSFT) – $18.8 Billion

There are some who believe that Microsoft’s (Nasdaq: MSFT) best years are behind it and the company is riding into the sunset. While Microsoft is no longer synonomous with tech’s tomorrow (see Google, Facebook and Apple), there is no denying that company is still a cash cow.

Microsoft just announced its acquisition of Skype in a deal valued at $8.5 billion. Microsoft plans on intregrating its technology with the XBox console, Kinect device and its Windows Phone platform. This may be the deal that yields the strategic benefits Microsoft needs to stop following the leaders in the industry, and start leading again.
Photo courtesy of Flickr — Robert Scoble.



The Most Profitable Companies Invest In NO.3: Chevron (NYSE: CVX) – $19.0 Billion

Chevron (NYSE: CVK) is a top-five oil firm, given its vast reserves of oil and natural gas. Growth during the past decade has been stellar, as sales have improved 15.5% and earnings by 17.5% on average each year in the past decade. Growth is projected to continue apace, with the earnings consensus for this year at $12.12 a share, or nearly 30% above last year’s levels.

At the current price, Chevron offers the solid combination of a low earnings multiple, a decent dividend yield of 2.7% and strong projected growth. And nearly 60% of last year’s stales stemmed from overseas, giving the company exposure to faster-growing regions outside of the United States.
Photo courtesy of Flickr — Jonathan McIntosh.



The Most Profitable Companies Invest In NO.2: AT&T (NYSE: T) – $19.9 Billion

AT&T (NYSE: T) posted a $19.9 billion 2010 net income, and $1 billion of that money is being invested in the cloud computing business in 2011. This will help AT&T achieve tremendous efficiencies and flexibility in cloud-based environments in order to provide applications for any type of device.

AT&T also just acquired T-Mobile for $39 billion, which helps the company vastly expand its broadband network and possibly position itself as market leader in the U.S. wireless industry.
Photo courtesy of Flickr — Chris Young.



The Most Profitable Companies Invest In NO.1: Exxon Mobil (NYSE: XOM) – $30.5 Billion

There’s no debate over how Exxon Mobil (NYSE: XOM) will use its prodigious profits. The energy giant has spent eight years buying back stock, and there’s no indication that it will stop now. Exxon Mobil has bought back two billion shares since 2002, leading to a 29% reduction in its share count.

Assuming Exxon Mobil will once again focus on stock buybacks, the share count may drop from the current 4.8 billion to just four billion by the middle of 2013. For a company with $30 billion in annual income, the shrinking share count could mean record profits per share.

Best Stocks To Invest in January 2012

My investment strategy seeks out stocks that are cheap relative to their growth rate — referred to as growth at a reasonable price, or GARP. To that end, I seek out stocks that are selling at low price-earnings-to-growth, or PEG, ratios.

The price-to-earnings, or P/E, ratio is a measure of risk. It calculates the multiple of earnings an investor is willing to pay. The higher the multiple, the greater the stock price will react to changes in earnings per share. A stock sporting a lower multiple is considered safer because of the lesser impact that earnings has upon stock price. Lower-P/E stocks tend to compensate investors by paying dividends.

Best Stocks To Buy For 2012: F.N.B. Corporation (FNB)

F.N.B. Corporation, through its subsidiaries, provides various financial services to consumers and small to medium-sized businesses. The company operates in four segments: Community Banking, Wealth Management, Insurance, and Consumer Finance. The Community Banking segment offers various commercial banking services, including commercial and individual demand, savings, and time deposit accounts; and commercial, mortgage, and individual installment loans. The Wealth Management segment provides a range of personal and corporate fiduciary services, such as the administration of decedent and trust estates. It also offers various alternative products, including securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment operates as a full-service insurance agency that offers commercial and personal insurance through various carriers; acts as a reinsurer to underwrite credit life, and accident and health insurance; and offers title insurance products. The Consumer Finance segment involves in making personal installment loans to individuals; and purchasing installment sales finance contracts from retail merchants. As of December 31, 2009, it had 224 community banking offices in Pennsylvania and Ohio, and 57 consumer finance offices in Pennsylvania, Ohio, and Tennessee. The company was founded in 1974 and is headquartered in Hermitage, Pennsylvania.
Best Stocks To Buy For 2012: STEC Inc. (STEC)

STEC, Inc. designs, manufactures, and markets enterprise-class flash solid-state drives (SSDs) for use in high-performance storage and server systems. Its solid-state drive products include ZeusIOPS SSDs, which provide enterprise-class data storage solutions; and MACH-class SSDs that are small form factor storage solutions for mission-critical systems in various industries. The company?s flash cards and flash module products comprise ATA PC Cards for equipment requiring standard form factors and moderate capacities, such as data recorders, avionics systems, and telecommunication applications; CompactFlash products, which provide interoperability with systems based on the PC Card ATA standard by using a passive adapter; flash modules; secure digital memory cards; USB flash drives; and single chip drives. It also offers dynamic random access memory (DRAM) products, which include dual in-line memory modules (DIMMs), small-outline DIMMs, mini-registered DIMMs, very low profile registered DIMMs, and fully-buffered DIMMs for computing, communications, and industrial applications. In addition, the company provides integrated circuit tower stacked components for thin small outline package and ball grid array semiconductor packages for use on memory modules and within high capacity flash products; DRAM modules with stacked components for use primarily in high-performance servers, workstations, switches and routers, and other custom systems; and flash products with stacked components. It sells its products through direct sales force and original equipment manufacturer distributors in the United States and internationally. STEC, Inc. was founded in 1990 and is headquartered in Santa Ana, California.

Advisors’ Opinion:

* Curtis2011-8-26Stec is the only provider qualified and shipping product in the Enterprise Storage Market for Fibre Channel and SAS interface drives. While competition appears inevitable in the market in the future, the brokerage believes the company has a strong technological and qualification lead at the OEMs, which should enable it to maintain market share leadership in the future.”Given our expectation that the Enterprise Storage SSD market is likely to be significantly up in 2011 over 2010, and STEC appears likely to maintain an edge over competition in terms of technology and, hence, market share, we believe STEC shares at current levels do not capture the potential upside in terms of market potential or competitive positioning,” the analysts said.
Best Stocks To Buy For 2012: Imergent Inc. (IIG)

Advisors’ Opinion:
* Zacks2011-10-24iMergent, Inc. (IIG) said it made progress on all fronts and delivered a solid fiscal first quarter performance in early November. The company, which provides eCommerce and software for small businesses and entrepreneurs, stated that strong domestic sales and a reinvigorated international program spawned fiscal first-quarter revenue of $29 million, compared to $11.4 million a year earlier. Furthermore, net income reached 18 cents per share, reversing a year-ago loss. Net dollar volume of contracts written was $32.4 million, compared to $17 million. Shares of iMergent jumped 38% during November and reached a new 52-week high on the 16th of the month.iMergent increased its guidance for full year 2007 due to strong demand and response to its marketing. Net dollar volume of contracts written is expected to grow between 25% and 30% from fiscal 2006.
Best Stocks To Buy For 2012: Modine Manufacturing Company (MOD)

Modine Manufacturing Company engages in the development, manufacture, and marketing of heat exchangers and systems for use in on-highway and off-highway original equipment manufacturer (OEM) vehicular applications, and to various building, industrial, refrigeration, and fuel cell markets. It offers power train cooling products, including engine cooling modules, radiators, charge-air-coolers, condensers, fan shrouds, and surge tanks; on-engine cooling products comprising exhaust gas recirculation coolers, engine oil coolers, fuel coolers, charge-air-coolers, and intake air coolers; oil coolers consisting of transmission oil coolers and power steering coolers; and fuel coolers. The company also provides gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; hydronic products, including commercial fin-tube radiation, cabinet unit heaters, and convectors; roof mounted direct and indirect fired makeup air units; unit ventilators; close control units for precise temperature and humidity control applications; chillers; ceiling cassettes; and condensing units and coils for heating, refrigeration, air conditioning, and vehicular applications. Its customers include truck, automobile, bus, specialty vehicle, agricultural and construction, and heating and cooling OEMs; construction contractors; wholesalers of plumbing and heating equipment; fuel cell manufacturers; engine manufacturers; industrial manufacturers of material handling equipment, generator sets, and compressors; and various end users. The company offers its products primarily in North America, Europe, South America, Africa, and the Asia/Pacific. Modine Manufacturing Company also exports its products. The company was founded in 1916 and is headquartered in Racine, Wisconsin.