5 Stocks You Need for a Balanced-Budget World
0.66%May 01 | MyPlanIQ portfolio symbol P_34727
5 Stocks You Need for a Balanced-Budget World
As we come to terms with the new concerns of double-dip recession,
Eurozone debt and continued wild swings in the market, the pundits are
coming up with stocks you can buy to make the most of these difficult
times. It's clear that the appetite for returns has been replaced with a
desire for lower risk alternatives.
Jim Royal outlines his approach and selections assuming that unemployment will continue to be a challenge and world economies see sluggish growth.
In a nutshell, his approach is to get good long-term values, you buy
when
there's uncertainty. He then outlines his choices that should do well in
conditions we are anticipating over the next couple of years.
His selections are:
|
Company |
Market cap |
P/E |
Yield |
|---|---|---|---|
| National Grid (NYSE: NGG) | $33.8 billion | 9.4 | 6% |
| AT&T (NYSE: T) | $174.9 billion | 8.9 | 5.9% |
| Telefonica (NYSE: TEF) | $98.0 billion | 7.4 | 10.6% |
| BP (NYSE: BP) | $141.3 billion | 7.1 | 3.9% |
| Annaly Capital (NYSE: NLY) | $16.6 billion | 6.7 | 15.5% |
Source: Capital IQ, a division of Standard & Poor's.
The National Grid operates power and gas transmission systems in
the U.S. and U.K. It operates like a toll road, earning money whenever
gas or electricity move across its transmission network. Its hard assets
are absolutely vital, and they help backstop the stock's valuation.
AT&T and Telefonica are heavyweight telecommunications companies and our appetite for phone services continues unabated.
Oil companies will continue to do well and BP is cheap because of the recent Gulf of Mexico disaster but there are others.
Annaly Capital gives access to US real estate which should provide
stability given that we have learned our mortgage lessons and this has
been priced into the market.
We entered these funds into our system and then compared it with a balanced portfolio of Dividend producing ETFs.