Stock Plays: Dividends & Debt-Free

Fort Pitt Capital Group's Charlie Smith has been getting an early start on his holiday shopping — and he has some stock-buy suggestions based on what others have been buying.


Take, for instance, AT&T .

"They actually have a couple of good growth businesses, in, obviously, the [Apple] iPhone," he said. "It's a terrific dividend play. The company has announced that they have the cash flow to support a dividend increase, and a dividend increase in this environment is kind of unusual — and it's all about staying power."

He also likes energy driller Hercules Offshore.

"Hercules has some long-term contracts, particularly overseas, which basically have built in a pretty good earnings number through the end of next year," he explained. "Most importantly, they're selling at about two times operating cash flow, and they don't have any debt maturing until 2013."


Disclosure information for Charlie Smith was not immediately available.