Patty Edwards: 5 Dividend Payers to Buy Right Now!
Tired of getting whipsawed by every headline out of Europe. Pro trader Patty Edwards feels your pain.
Edwards has done some proprietary analysis and her results suggests extreme volatility in the market could endure for as long as the next 6 years.
You read that right -6 years.
And in this kind of environment her research shows the best place to put money to work is in dividend paying stocks.
”Because they’re mature companies, dividend paying stocks have lower volatility,” she explains. “They’re not going to set the world on fire but they perform. In fact, some have had phenomenal year to date returns."
She also says, looking back at history, dividend payers are winners. She’s crunched the numbers and showed us her results. “Over the past 100 years, the big returns have come from dividend payers.”
And Edwards' favorite is Phillip Morris . "It's one I will be holding for a long time."
Like Karen Finerman, Edwards feels smoking is bad for your health but good for your portfolio. This stock is up 20% year to date. "Even in a bad economy cigarette smoking isn't something people give up."
As the international arm of Marlboro, Virginia Slims and other name brands, Philip Morris is currently experiencing strong growth in Japan. And the sales trends in both emerging markets and the rest of Asia is also very strong.
After Thursday’s Halftime broadcast Edwards set aside a little time and presented a few more ideas. Following are 4 more dividend paying stocks that she recommends right here and right now:
Edwards likes this chemical company for a simple reason. You find a can of their signature product in almost every garage in America.
“When you need it do you go out and buy it.” she asks. The answer is yes. “But do you know how much it costs?” The answer is no. Enough said.
Edwards has been bullish on this stock for a while but she likes it even more now due to the acquisition of El Paso. “Usually an acquirer declines on the news but the Street liked the deal so much, it traded higher.”
And as an energy play, Edwards tells us this stock exposes investors to upside in the economy but also cushions against downside with the dividend.
”Diapers, toilet paper, tissues, they’re the staples of life!” Edwards says with a smile. And even in the worst economy people have to – well you know.
Of course there’s the argument that people will trade down to store brands but Edwards says Kimberly Clark has a secret. “They make some of the store brands too!”
Much like Steve Grasso Edwards thinks utilities belong on your radar. And she’s particularly keen on this one because ConEd serves New York. “The largest city in the nation will need power and people using that power will have to pay their bills!”
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CNBC.com with wires.