Abbott Laboratories (ABT)
Bank of America (BAC)
General Mills (GIS)
Procter & Gamble (PG)
Over the years I have admired these seven companies, but for some reason I never got around to buying any of them. As a consequence of this oversight I have missed out on a great deal of profit. These large companies may not be glamorous, but they are true blue chips. Each has an admirable growth record, a secure market niche, a history of raising their dividend annually for many years, and a current dividend yield at least equal to the S&P 500. However, each of these stocks is less volatile than the index; they weather bear markets relatively well, so they are suitable for “widows-and-orphans” portfolios. I am adding these choice low-risk dividend aristocrats to the Watchlist so I will see their charts regularly and become aware of buying opportunities.
As a matter of fact, BAC is on sale now and may be of interest to conservative income investors. The large-cap banks have not been keeping up with the torrid pace of this year’s rally and they have become relatively cheap. But BAC is even cheaper, thanks to recent arbitrage activity related to rumors that BAC will buy Barclays.