The five stocks that I look at are in my opinion some of the best investment options currently available. I chose these five stocks because they offer high yields and low risk, and are experiencing stronger sales this year. In this article, I will show how they are stable organizations that have solid business models. I will thereafter make recommendations to investors based on my findings.
General Motors (NYSE:GM) is currently trading at nearly $27 per share. The price has increased over this quarter and experts predict that it may continue to do so. The market capitalization at this price is almost $47 billion and the average trading volume is more than 12 million. There are approximately 2 billion shares outstanding in the market and earnings per share (NYSEARCA:EPS) are close to $5.
The price-to-earnings (P/E) ratio is close to 6, which indicates that it is a high value stock, since a P/E ratio less than 10 is regarded as extremely attractive. The debt-equity ratio is 0.35, which indicates that the company is stable and is managing its debt well. Furthermore, the stock is not considered risky by experts as they suggest buying the share at its current price.
The income of General Motors is growing at a steady pace and investors feel that they will be able to make healthy profits. Furthermore, the sales of cars are starting to rise once again after experiencing a dip during the global financial crisis. This means that automakers like GM have are going to benefit tremendously and their share prices are going to be positively impacted in line with the increase in their earnings.
In my opinion, General Motors is a great stock. Its financial indicators are impressive and it has a lot of potential in terms of long-term return. The market is recovering substantially and the stock prices are benefiting as the business are growing. This means that there is considerable opportunity for investors to make significant profits.
General Mills (NYSE:GIS) is trading close to $39 per share. This makes for the market capitalization of the share at around $26 billion and average trading volume at almost 4 million. The earnings per share is an impressive figure of above $2 and price-to-earnings (P/E) ratio is above 16, which is fairly decent. The last dividend that the company paid out to stockholders was $0.34 per share, making the dividend yield highly attractive at more than 3%.
There are approximately 645 million shares outstanding in the market. The debt-equity ratio is close to 1.2 and the beta is calculated at 0.18. This signifies that the stock is a safe investment, as the company is managing its debt well and the beta indicates that the share is just 18% as volatile as the market.
The income and sales of the share are growing steadily and the profit margin is close to 10%. Experts suggest that this would be a good investment option by indicating that the company is fundamentally strong and has tremendous potential to offer significant returns this year.
Furthermore, General Mills has announced that it will launch 50 new products by the third or fourth quarters of 2012. This, in turn, will increase the company's competitive edge and help it widen its competitive moat. I believe that this stock is a viable option to invest as it a low risk stock that offers good returns and potential for future growth.
Abbott Laboratories (NYSE:ABT) is currently trading at a price around $56 per share. The stock is fairly stable as is indicated by the small margin 52-week trading range of $46-$57. The current market capitalization is close to $86 billion and average trading volume is more than 7 million. Earnings per share is attractive at $3, but the price-to-earnings (P/E) ratio of 19 is not exactly impressive.
The last dividend paid to stockholders was $0.51 per share and this makes the dividend yield a staggering 4%. The beta for the stock is 0.30, which indicates that the volatility of the share is low. This means that we can expect a steady return from this stock, as it is a relatively safer investment option.
The net profit margin is almost 12%, with the income and sales expected to grow in the future. It has bright future prospects and it isn't a surprise that Abbot Laboratories is regarded as one of the most stable and high yielding stocks currently in the market.
In my opinion, this stock has the potential to offer high returns in future, and therefore will be a good investment option. It is a stable company with low risk, as it has a well diversified portfolio.
Accenture PLC (CAN) has a current trading price around $59 per share. The market capitalization at this price is nearly $81 billion and average trading volume is above 4 million. There are approximately 707 million shares outstanding in the market right now. The dividend yield is above 2% and the last dividend paid to stockholders was $0.68 per share.
The earnings per share is fairly decent at almost $3 and the price-to-earnings (P/E) ratio is close to 17, which is also quite decent. The debt of the company is significantly low and the beta is calculated to be 0.80, which means that the stock is 80% as volatile as the market. This indicates that there is considerable risk associated with the stock; however, this can be somewhat overlooked considering the markets are appreciating.
The company is quite stable and the stock is relatively a safe investment. Sales and income are growing at steady rates, with the profit margins close to 10%. Experts suggest that investors who are looking for steady returns should definitely consider buying this stock. This is supplemented by recent reports from the market that have highlighted that business services stocks are an excellent option for a diversified portfolio.
The stock of Accenture PLC is stable and has grown steadily. I believe that it is a good investment option that offers significant yields. Therefore, I advise investors to include this stock in their portfolios.
Altria (NYSE:MO) is currently trading at almost $30 per share. The market capitalization at this price is in excess of $60 billion and the average trading volume is close to 12 million. The earnings per share is decent at $2 and price-to-earnings (P/E) ratio is 18, which is relatively fine.
Altria paid out a dividend of $0.41 per share, making the dividend yield impressive at above 5%. The beta for this stock is 0.41, which means that the volatility of the stock is low and it is a relatively safe investment. The net profit margin is more than 14% and this means that the earnings of the company are going to increase significantly as its sales increase in a recovering market. It is one of the five stocks with high dividend yields owned by most industry experts.
In my opinion, this stock is a viable investment because it has significantly low risk, and at the same time, has one of the highest dividend yields. It will definitely be a good option for developing a diversified portfolio.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.