Investors should look into stocks that offer a dividend payout, said Joseph Keating, executive vice president and chief investment officer of CenterState Bank, and Chip Cobb, senior vice president at Bryn Mawr Trust.
Keating’s Picks:
AT&T—“They’ve paid a dividend for 27 consecutive years,” Keating told CNBC.
ConEdison—“They’ve paid dividends for 36 consecutive years,” he said of the firm. “So with stable cash flows, the company should do well with continued growth in the economy.”
TJX—“The dividend yield is only over 1 percent, but they have increased their dividend payout by 122 percent over the last four years,” said Keating. “We like discount retailers because while we do think the economy will do better in 2011 and 2012, we still have to acknowledge that we have an almost 10 percent unemployment rate—so TJX is a good place to be.”
3M
Intel
Nucor
Cobb’s Picks:
AT&T—“They’ve consistently raised their dividends and also announced a huge stock buyback,” Cobb said of the firm. “We do have a little bit of concern in terms of the exclusive contract with the iPhone—that’s going to be an issue—however, other types of services [they offer] are much more advanced with cloud computing and data storage, so we think [AT&T] will continue to do well.”
Illinois Toolworks—“Their dividend may not be as attractive as some of the others in the group, but we think it’s very solid,” he said. “They are very diversified not only in the customers they deal with, the industries they’re involved with, but geographically as well.”
PepsiCo
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Scorecard—What They Said:
- Cobb's Previous Appearance on CNBC (Oct. 8, 2010)
- Keating's Previous Appearance on CNBC (Nov. 10, 2010)
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Market Views—Across the Board:
- 2011 Will Be 'Good' For Big Banks: Stock Picker
- S&P to Rise 15-20% Next Year: Chief Investor
- Expect Another Recession in 2012-2013: Strategist
- S&P to Rise 15-20% Next Year: Chief Investor
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CNBC Data Pages:
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CNBC Slideshows:
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Disclosures:
No immediate information was available for Cobb or Keating.
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