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6 High-Quality High-Yield Stock Picks: Strategists

Look to invest in the highest-quality and high-yielding stocks, recommended Channing Smith, vice president and co-manager at Capital Advisors, and Oliver Pursche, president of Gary Goldberg Financial Services.

“In this environment, companies with financial strength and free cash flow that are able to increase their dividend and have a history of doing so, are going to be best positioned over the next few years,” Pursche told CNBC.

Pursche’s top picks include Abbott Labs, Eli Lilly , Verizon , Lockheed Martin and Southern.

Smith also likes Abbott Labs .

“They have a great product pipeline, their existing products are very strong and they are not plagued by the patent expirations that the rest of the industry is facing," he said of the firm.

"They are going to grow earnings at 12 percent going forward.”

Smith also favors AT&T .

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Scorecard—What He Said:

  • Pursche's Previous Appearance on CNBC (Dec. 17, 2010)

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More Market Analysis & Opinion:

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CNBC Slideshows:

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CNBC Data Pages:

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Disclosures:

No immediate information was available for Pursche or Smith.

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Disclaimer