CNBC Stock Blog

Prep Your Portfolio for Next Week: Stock Pickers

Terrence Dolan, CEO of Benjamin & Jerold Brokerage and Peter Andersen, portfolio manager at Congress Asset Management told investors how to prepare their portfolios for the week ahead.

“In this market area, you have to be selective—try to look at some of the dividend yields and also some of the call option premium out there,” Dolan told CNBC. “In general, this market is going to see swings up, swings down.”

Dolan likes Edison , Philip Morris , Proctor & Gamble, and Caterpillar .

In the meantime, Andersen recommended the following stocks:

El Paso—"I like to get paid for holding stocks based on dividend yield, but El Paso is a bit of a contrarian play," he said. "Even though it [recently] cut dividends, it’s a $10 stock and I think the price can easily go up to $15 by the end of this year. It has a monopoly on the gas pipeline in the U.S…As natural gas recovers, so will El Paso."

Diageo —"It pays a solid dividend and what I like about Diageo is that their dividend is 100 basis points greater than its bond yield," he said. "It’s a great seasonal play too because we’re going into the season of high alcohol consumption."

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Dolan doesn’t own shares of ED, PM, CAT, PG.

No immediate information was available for Andersen or his firm.