The market has been on fire since the dark days of the financial crisis. The S&P 500 has soared an astounding 85% since the lows of March 2009. Market returns have been propelled by more cyclical sectors like technology and consumer products, while the more defensive sectors have badly lagged the market. In short, it's the go-go stocks that have been the first to benefit in the post crisis market, but things might be changing...
The bull market has gotten long in the tooth while at the same time uncertainty is growing as the Middle East erupts in turmoil. Oil prices are soaring near $100 a barrel from just $85 a month ago and may climb still higher, threatening economic recovery.
It may be time for investors to look at defensive stocks that can perform in any economy. Health care, more specifically major drug manufacturers, earn consistent income in any economy and, best of all, pay fat dividends.
Health care stocks have their critics, however. Most large drug companies are facing steep patent cliffs and an accompanying fall in revenue in the years ahead. In addition, uncertainty regarding health care legislation and possible higher costs going forward are weighing on prospects.
However, these problems are largely factored into share prices already.
Three stocks in particular stand out as having strong business prospects, cheap valuations and high dividends.
10 Good Stocks To Buy 2013:Xinyuan Real Estate Co Ltd (XIN)
Xinyuan Real Estate Co. Ltd., together with its subsidiaries, engages in residential real estate development in China. The company?s residential projects comprise various residential buildings that include multi-layer apartment buildings, sub-high-rise apartment buildings, or high-rise apartment buildings; auxiliary services and amenities, such as retail outlets, leisure and health facilities, kindergartens, and schools; and small scale residential properties. It also offers property management and other real estate related services, such as landscaping and installing intercom systems. In addition, the company leases properties, including an elementary school, a basement, three clubhouses, five kindergartens, and parking facilities. As of December 31, 2010, it had 21 completed projects with a total gross floor area (GFA) of approximately 2,049,460 square meters and comprising a total of 23,324 units, as well as 8 projects under construction with a total GFA of 1,804,946 square meters. It primarily operates in seven tier II cities, comprising Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou, and Chengdu. The company was founded in 1997 and is headquartered in Beijing, the People?s Republic of China.10 Good Stocks To Buy 2013:Cyanotech Corporation (CYAN)
Cyanotech Corporation engages in the cultivation, production, and sale of natural products derived from microalgae worldwide. The company?s products include BioAstin natural astaxanthin, a dietary antioxidant for use as a human nutraceutical and functional food ingredient to support and maintain the body's natural inflammatory response, as well as to enhance skin, muscle, and joint health; and Spirulina Pacifica, a nutrient-rich dietary supplement used for extra energy, as well as used as a strengthened immune system and source of antioxidant carotenoids. It sells its products to manufacturers, formulators, and distributors in the health foods and nutritional supplements markets; and to distributors, retailers, and direct consumers in the form of packaged consumer products. The company markets its products through online, as well as through resellers. Cyanotech Corporation was founded in 1983 and is headquartered in Kailua-Kona, Hawaii.10 Good Stocks To Buy 2013:BGC Partners Inc. (BGCP)
BGC Partners, Inc. operates as a financial intermediary to the financial markets specializing in the brokering of various financial products. It provides electronic marketplaces, including government bond markets, spot foreign exchange, foreign exchange options, corporate bonds, and credit default swaps in various financial markets through its eSpeed- and BGC Trader- branded trading platform which can be accessed through its high speed data network, over the Internet, or third party communication networks. The company?s brokerage services include trade execution, broker-dealer services, clearing, processing, information, and other back office services, as well as cover various products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, and structured products. It also provides financial technology solutions, market data, and analytics related to financial instruments and markets. In addition, the company offers customized screen-based market solutions, which enables its clients to develop a marketplace, trade with their customers, issue debt, trade odd lots, access program trading interfaces, and access its network and intellectual property. Further, it licenses intellectual property portfolio and software solutions to various financial markets participants; and provides software development, software maintenance, customer support, infrastructure, and internal technology services to support electronic trading platforms. The company serves banks, broker-dealers, investment banks, trading firms, hedge funds, governments, investment firms, professional trading firms, futures commission merchants, and other professional market participants and financial institutions in the United States, the United Kingdom, France, Asia, Europe, Africa, the Middle East, and other Americas. The company was founded in 1999 and is based in New York, New York.10 Good Stocks To Buy 2013:Genuine Parts Company (GPC)
Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company operates in four segments: Automotive Parts Group, Industrial Parts Group, Office Products Group, and Electrical/Electronic Materials Group. The Automotive Parts Group segment distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment. This segment also distributes accessory items used in the automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It owns and operates automotive parts distribution centers and automotive parts stores under the NAPA name. The Industrial Parts Group segment distributes industrial replacement parts and related supplies, such as bearings, mechanical power transmission, industrial automation, hose, hydraulic and pneumatic components, industrial supplies, and material handling products. This segment serves various industries, including the food, forest products, primary metal, paper, mining, automotive, petrochemical, and pharmaceutical industries. The Office Products Group segment involves in the wholesale distribution of a line of office and other business related products that are used in the daily operation of businesses, schools, offices, and institutions. The Electrical/Electronic Materials Group segment distributes insulating and conductive materials, assembly tools, test equipment, and custom fabricated parts. This segment provides distribution services to original equipment manufacturers, motor repair shops, and assembly markets. The company was founded in 1928 and is headquartered in Atlanta, Georgia.10 Good Stocks To Buy 2013:American Tower Corporation (AMT)
American Tower Corporation, through its subsidiaries, operates as a wireless and broadcast communications infrastructure company. It develops, owns, and operates communications sites; and leases antenna space on multi-tenant communications sites to wireless service providers, and radio and television broadcast companies. The company?s Rental and Management Operations segment leases space on its wireless communications towers to customers, including personal communications services, cellular, specialized mobile radio, WiMAX, paging, and fixed microwave. This segment also leases on its broadcast towers to wireless service providers, and radio and television broadcast companies; and distributed antenna system (DAS) networks in malls, casinos, and other in-building applications, as well as provides rooftop management services to property owners who own rooftops that are capable of hosting wireless communications equipment. Its Network Development Services segment provides tower-related services, such as site acquisition, zoning and permitting services, and structural analysis services. The company?s communications site portfolio includes approximately 38,048 sites, such as wireless communications towers, broadcast communications towers, and DAS networks in the United States, Brazil, Chile, Mexico, India, and Peru. American Tower Corporation was founded in 1995 and is headquartered in Boston, Massachusetts.10 Good Stocks To Buy 2013:Choice Hotels International Inc. (CHH)
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. It franchises lodging properties under its proprietary brand names, including Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites, and Ascend Collection brands. As of March 31, 2011, it operated 6,128 open hotels comprising 492,733 rooms, as well as 606 hotels consisting of 49,908 rooms under construction, awaiting conversion, or approved for development in 49 states, and the District of Columbia in the United States; and approximately 40 countries and other territories. The company was founded in 1981 and is based in Silver Spring, Maryland.10 Good Stocks To Buy 2013:Hong Kong Highpower Technology (HPJ)
Highpower International, Inc., through its subsidiaries, develops, manufactures, and markets rechargeable nickel metal hydride and lithium-ion batteries and related products for use in various electronic devices. The company produces consumer batteries in A, AA, and AAA sizes in blister packing, as well as offers chargers and battery packs; and industrial batteries that are designed for electric bikes, power tools, and electric toys. It also manufactures lithium-ion and lithium polymer rechargeable batteries for applications, such as laptops, digital cameras, and wireless communication products. In addition, the company recycles batteries, and resells the recycled materials. It sells its products to original equipment manufacturers, and a network of distributors and resellers. Highpower International sells its products primarily in the People?s Republic of China, Hong Kong, and other Asian countries; Europe; North America; South America; and Africa. The company was formerly known as Hong Kong Highpower Technology, Inc. and changed its name to Highpower International, Inc. on October 21, 2010. Highpower International, Inc. was founded in 2001 and is based in Shenzhen, the People?s Republic of China.10 Good Stocks To Buy 2013:Noble Corporation (NE)
Noble Corporation operates as an offshore drilling contractor for the oil and gas industry worldwide. It involves in the contract drilling of oil and gas wells. The company?s fleet consists of 14 semisubmersibles, 12 drillships, 45 jackups, and 2 submersibles. Noble Corporation also provides labor contract drilling services. The company was founded in 1921 and is based in Baar, Switzerland.10 Good Stocks To Buy 2013:Frontier Communications Company (FTR)
Frontier Communications Corporation, a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. It offers local and long distance voice services, including basic telephone wireline services to residential and business customers; switched access services that allow other carriers to use the facilities to originate and terminate their long distance voice and data traffic; and directory services that provide white and yellow page directories for residential and business listings. The company also provides data and Internet services, which include residential services comprising high-speed Internet, dial up Internet, portal and e-mail products, and hard drive back-up services; and commercial and carriers services, such as metro Ethernet; dedicated Internet; Internet protocol, optical, multiprotocol label switching, and TDM data transport services. In addition, it offers direct broadcast satellite services and fiber optic video services, as well as provides online access to video content, entertainment, and news available on the worldwide Web through its Web site myfitv.com. The company was formerly known as Citizens Communications Company and changed its name to Frontier Communications Corporation in July 2008. Frontier Communications Corporation was founded in 1927 and is based in Stamford, Connecticut.Advisors' Opinion:
By Vita At 2011-10-6
Frontier Communications Corporation (FTR) a communications company, provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. Between 2004 and 2010 the company paid a quarterly dividend of 25 cents/share. Last year however it cut the distribution rate by 25% to 18.75 cents/share. The company has been unable to cover its dividend out of earnings since 2006. More than two-thirds of its distributions are non-taxable as t! hey are essentially a return of capital. Yield: 9.40%.
By Harding At 2011-9-21
CLO; EVP Reg & Gov't Affairs of Frontier Communications, Kathleen Q Abernathy, bought 40,000 shares on 09/09/2011 at an average price of $7.11. Frontier Communications Corp., formerly Citizens Communications Company, is a full-service communications provider and one of the largest rural local exchange telephone companies in the country. Frontier Communications has a market cap of $7.08 billion; its shares were traded at around $7.11 with a P/E ratio of 28.4 and P/S ratio of 1.8. The dividend yield of Frontier Communications stocks is 10.5%.
On August 3, Frontier Communications Corporation reported second-quarter 2011 revenue of $1,322.3 million, operating income of $238.3 million and net income attributable to common shareholders of Frontier of $32.3 million, or $0.03 per share. After excluding $20.3 million for acquisition and integration costs, $11.0 million for severance and early retirement costs and $10.5 million for a discrete tax item, net income attributable to common shareholders of Frontier for the second quarter of 2011 would have been $62.2 million, or $0.06 per share.
Frontier Communications is in the portfolios of Prem Watsa, Jean-Marie Eveillard, and NWQ Managers.
In September, Director Edward Fraioli and CLO; EVP Reg & Gov't Affairs Kathleen Q Abernathy bought shares of FTR stock. Director Jeri B Finard and Director James S Kahan bought shares in August.
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