End the Year Strong With These Picks
4 Must-Own Dividend Stocks
The market has held up amazingly well in the face of some very
scary headlines: European debt contagion growing, heightening
tensions in Korea, concerns over inflation in China, new
investigations into insider trading, and a Congress that is
struggling to come up with a budget and avoid a government
However, against the backdrop of unfavorable daily headlines are
a recovering U.S. and world economy, and a Fed that continues to
pump new money into the equity markets. If the market continues to
hold above support, the likelihood of a solid breakout early in the
new year is high.
Here are the top stocks to buy for December:
Top Stock to Buy: Caterpillar (CAT)
) manufactures construction and mining equipment, diesel and
natural gas engines, and industrial gas turbines. This blue chip
has been in a bull market since the stock market bottomed in March
2009. The advance from its bear market low at $22 has been very
orderly - defined by the stock's ability to stay above its 200-day
moving average and bullish support line.
In September, CAT broke from a
and began a new march north. Any further weakness could be used as
a buying opportunity. S&P has a "four-star buy" rating on CAT
with a 12-month price target of $95, which matches our technical
Top Stock to Buy: Cenovus Energy (CVE)
Canadian integrated oil company
Cenovus Energy Inc.
) is focused on the development of bitumen deposits (oil sands).
The company markets itself as the technological leader in enhanced
oil recovery with lower costs of recovery and a smaller
environmental footprint than its competition.
A recent statement from the U.S. Joint Chief's Joint Operating
Environment report warned, "By 2012, surplus oil production
capacity could entirely disappear." This North American energy
company is in a good position to benefit from domestic
CVE's earnings are expected to rise 55% in 2010 and 16% in 2011,
according to S&P, which has a "four-star buy" rating on the
stock with a target of $35. The technical target is in the high
Top Stock to Buy: FedEx (FDX)
This global leader in domestic and international air express and
domestic ground package delivery should benefit from any
improvement in the world economies.
S&P estimates that
) could earn $5.35 in FY 2011, up from $3.76, and it projects $6.86
in FY 2012. S&P has a "five-star strong buy" rating on the
stock with 12-month price target of $113.
Technically, FDX appears to be completing a "V" bottom
formation, which would be confirmed by a break to new highs, and
could produce a target of $120.
Top Stock to Buy: Tiffany & Co. (TIF)
In the jewelry world,
Tiffany & Co.
) is associated with the very best. Despite difficulties in the
retail sector, this stock has maintained a solid uptrend and
recently broke to new highs.
S&P said it expects an 11% sales increase in FY 2011
(January) and 2012, and it has a 12-month target of $65 for the
Technically, TIF broke from a massive reverse
on the weekly chart with a long-term target of $75-plus.
Top Stock to Buy: Coca-Cola Co. (KO)
The Coca-Cola Company
) had a powerful breakout in September, coupled with extremely
heavy accumulation, which has led to a 45-degree-angle advance. The
buying in KO is so powerful that it recently broke above its bull
KO appears to be overbought, so a retreat back below $62 would
be an excellent buying opportunity.
S&P has a "five-star strong buy" rating on KO with a target
of $73, which matches our technical target.
Top Stock to Buy: Triangle Capital Corp. (TCAP)
Triangle Capital Corporation
) is private equity and venture capital firm specializing in
buyouts, change of control transactions, acquisitions, growth
financing, and recapitalizations with lower- to middle-market
BB&T Capital Management has a "No. 1 buy" on TCAP, and The
Street.com also rates the stock a "buy" with a target of $24. TCAP
is supported by a dividend yield of 8.8%. The break from an
in October renders a technical target of $22 to $25.