Dividend investing works. GARP (growth at a reasonable price) investing works. Low volatility or low beta investing works, particularly in difficult times. Wouldn't it make sense for conservative investors to look for stocks that fit all three methods. So we looked.
We found 16 stocks that are either Dividend Champions or Dividend Contenders, with more than 2% yield, that are also found in the Russell 1000 GARP sub-index and also in either the Russell 1000 low volatility sub-index or the Russell 1000 low Beta sub-index.
Here they are:
| CAT | Caterpillar |
| OXY | Occidental Petroleum |
| AFL | AFLAC |
| UTX | United Technologies |
| WAG | Walgreen |
| BEN | Franklin Resources |
| MCD | McDonald's Corpor |
| PG | Procter & Gamble |
| XOM | Exxon Mobil |
| MMM | 3M Company |
| GPC | Genuine Parts |
| ADP | Automatic Data Processing |
| PEP | Pepsico |
| ABT | Abbott Labs |
| CL | Colgate-Palmolive |
| WMT | Wal-Mart |
Overall, long-term, that's a pretty darn good looking list.
Based on July 3, 2012 data, this table shows their yield, the ratio of the 12-month Street Consensus target price divided by the market price, and the Thompson Reuters StarMine rating (1-10, higher is better) based on their assessment of the best analysts for each stock. Also shown in the table is an "X" to show membership in the GARP, LVOL or LBTA sub-indexes, and for membership in the Dividend Champions or Dividend Contenders lists.
(click to enlarge)
Disclosure: QVM has positions in MCD, PEP, and ABT as of the creation date of this article (July 8, 2012).
General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.
