Last week, I promised to show a few of the stocks that I consider “buy-and-hold” companies. Before I get to that, though, let's take a quick look at the Dow.
And I must say it’s been acting just like the charts predicted in that it’s pretty much hit the July 2011 highs. I noted that area a few weeks ago, and while I was skeptical along the way (i.e. hedging my bets!), it finally got there on Friday.
Now that it’s there, though, the average does look a bit over-extended. We saw weakness in the Nasdaq on Friday, so I’m guessing the Dow isn’t far behind. Remember, the Dow is up more than 4% for January already and it’s just not a “rate of ascent” the market can hold.
Now, regarding my portfolio stocks, I essentially like bread-and-butter, common day plays ... that also pay a nice dividend. I’ve had these stocks for a while and if you include the dividend payments they do a pretty good job of outperforming the market.
I also like Verizon Communications (VZ). I love what the company provides via all my cell service and especially like the move it made late last year. This stock is even better than Lockheed, paying a 5.1% dividend.
Again, nothing magical about either of these stocks; they’re just solid citizens that should be around for a long time.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."