Stocks struggled for direction Wednesday following a handful of economic data that confirmed slow growth in the economy. Susan Fulton, president and co-founder of FBB Capital Partners, and Mike Holland, chairman of Holland & Company, shared their best plays.
“There is no such thing as long-term market stability,” Fulton told CNBC.
“What you have to do is have a strategy that takes into account that the market will have moves.”
Fulton said as a defensive play, she prefers big-cap names with self-sustaining dividends, such as DuPont , Verizon and ConocoPhillips .
In the meantime, Holland said he also favors large-cap multinational stocks.
“These companies have balance sheets that can support that kind of [dividend] payout, growth in payout and growth in earnings, because they are exposed to the emerging markets of the world,” he said.
Holland’s picks include ExxonMobil , Microsoft and Johnson & Johnson .
“For these companies, they’ll all grow much more rapidly than inflation in their dividends and earnings,” he said. “You’re looking at potential double-digit growth over the next five years.”
Scorecard—What They Said:
- Fulton's Previous Appearance on CNBC (Nov. 10, 2010)
- Holland's Previous Appearance on CNBC (Nov. 8, 2010)
More Market Advice—Read and Decide:
- Banks vs. Health Care—What to Buy Now: Stock Pickers
- Cramer: 1 Healthcare Name to Avoid
- Bull Market Is Not Over—Invest Here: BlackRock's Doll
CNBC Data Pages:
Holland owns shares of XOM, MSFT and JNJ.
No immediate information was available for Fulton or her firm.