It has been a brutal May for most investors. The Dow is down
about -10% so far as of the opening bell today, the S&P 500
is down -11% and the Nasdaq off -12%. Low risk trading strategies
are crucial to stock investing as a result of these harsh stock
The best investment strategy is investing money in the best
stock picks that pay you no matter what happens to the broader
My recommendation to you: Hide out in great blue chip stocks
with upside potential for shares and a healthy dividend to help
you ride things out when the market gets rocky.
My top stock along these lines for June is
Dr. Pepper Snapple Group
DPS products include not just its namesake drinks but also
Yoo-hoo chocolate milk, to Penafiel mineral water sold in Mexico
and a host of other beverages. When the company announced its
earnings for the first quarter, during the May 6 massive
sell-off, it was one of the few companies to end the day up
thanks to both increased revenue and positive earnings. This
shows me that Dr. Pepper Snapple has staying power.
7 Low-Risk Dividend Stocks with High
True, with a yield of less than 3% there are a number of other
dividend stocks with higher yields than Dr. Pepper Snapple.
However, those companies may not have the same upside share
potential as DPS.
Take dividend stock bellwether
), which is consistently one of the
top dividend stocks in the Dow
and currently boasts a dividend yield of about 7%. Dr. Pepper
Snapple is up 26% year-to-date as of the opening bell, compared
with a -15% slide in AT&T. Obviously the bigger dividend
doesn't offset that disparity.
The earnings of this beverage blue chip prove it also has
staying power. Dr. Pepper Snapple has topped Wall Street
estimates in each of the last four quarterly reports, with an
earnings surprise that averages over 11%. Not bad for a large cap
stock with wide analyst coverage.
Top 25 Dividend Stocks in the S&P 500
What's more, Dr. Pepper Snapple Group Inc. boosted its
quarterly dividend by 67% just last week to 25 cents a share. If
you get in to this stock over the next several weeks and become a
shareholder of record before June 21, you will be eligible for
the July 9 payout.
As unfortunate as the recent volatility has been on Wall
Street, it has served up a very clear reality check to
Put plainly, if you thought that the bull market was going to
keep chugging along from the March 2009 lows without a hitch, you
got another thing coming.
Buying a dividend stocks like Dr. Pepper Snapple is just one
of low-risk trading strategy.
For other tactics, check out a complete article about
7 low-risk trading strategies for June
As of this writing,
was recommending DPS to subscribers of his Blue Chip Growth