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  • 4 Dividend Stocks Which You Shouldn't Miss 0 comments
    Apr 24, 2013 3:56 PM | about stocks: PFE, MRK, WMT, CSCO

    Be sure to check out our detailed stock analysis (click here). The Delaware Dividend Income Fund has averaged an annualized 7.8% return for the past 10 years. In terms of safety and consistency, it doesn't get much better than that. The fund's focus is on large blue chip stocks with strong cash balances. In uncertain times, it's best to play defense rather than offense.

    Most of the stocks in their portfolio yield 2-3%, which some say is low, but fund manager Bob Zenouzi warns that investors chasing yield risk getting burned. Just because a stock pays a high yield doesn't mean it's a good investment. Many times, these stocks are actually in a weak financial position and are susceptible to market changes. If interest rates spike or the economy deteriorates, high-yielding stocks can see their dividends cut and stock price drop as a result.

    The philosophy at the Delaware Dividend Income Fund eschews these types of stocks. Instead, the fund favors strong brands that can withstand a downturn. They play defense rather than offense. I recommend the same to conservative investors, and here are four of their top choices so you can invest just like the fund without paying fund expenses. A couple of the top picks include cash flow generating pharma companies.


    Stocks: PFE, MRK, WMT, CSCO
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