8 High-Yielding Stocks That Are Showing Strong Momentum
One of the themes that Benzinga has been focusing on for 2012 is the relative attractiveness of large-cap, high yielding stocks. These names provide investors a degree of safety in an uncertain market environment, but could also produce respectable gains if 2012 turns out to be a good year for stocks. Furthermore, on a historical basis, blue-chip, dividend paying stocks appear undervalued. Below, readers can find eight defensive, blue-chip stocks that are yielding over 3% and are trading near new 52-week highs (suggesting strong momentum).
Abbott Labs (NYSE: ABT) - This stock is up a very respectable 16.72% over the last 52-weeks, and has a great looking chart. Abbott is a large-cap pharmaceutical and healthcare company with a market-cap of $88 billion and a very low beta of just 0.32. Its defensive properties and very attractive 3.41% dividend yield make it an attractive stock for risk-averse investors seeking quality and relative safety in 2012.
Bristol-Myers Squibb (NYSE: BMY) - This stock has had an awesome 2011, rising nearly 30% in the last year and is still yielding an extremely attractive 3.96%. The company has a market cap of $58.24 billion and a beta of just 0.54. The stock has run quite a bit in the last month and is sitting near a new 52-week high. Investors may be able to jump into BMY in the coming weeks on a pullback as the name is a little overbought in the near-term.
Duke Energy (NYSE: DUK) - This stock is up nearly 20% over the last 52-weeks and is trading just below a new high. The utility company has a market cap of $28.65 billion. DUK has a very defensive profile, a beta of just 0.33, and a dividend yield of 4.65% at current levels. This is definitely a name to keep an eye on in 2012.
General Mills (NYSE: GIS) - This is another defensive stock that has performed very well over the last year, rising 13.45% to $40.48. The 52-week high in GIS is just above at $40.80 and the stock's chart is showing a lot of momentum. Shares currently yield 3.01%, and like the other names on this list, GIS is not highly correlated to the performance of the broader market with a beta of just 0.20. Even in a down market, it is very possible that investors will be rewarded by owning this stock in 2012.
H.J. Heinz (NYSE: HNZ) - The ketchup business may not be terribly exciting, but it is profitable and dependable. With shares trading at $53.30, HNZ is sitting just below a new 52-week high and could break out in the coming weeks. The stock yields 3.60% at current levels and is a defensive name with a beta of 0.57. Over the last year, HNZ has risen a little more than 8%.
Kimberly Clark (NYSE: KMB) - This name should be on every conservative investor's radar. The consumer products company has seen its shares rise nearly 16% over the last year and KMB is close to putting in a new 52-week high. With a market cap of $29 billion, a beta of 0.34, and a dividend yield of 3.84%, this is a name prepared to withstand market turmoil in 2012.
Kinder Morgan Energy Partners (NYSE: KMP) - This is one of the best performing, highest-quality, Master Limited Partnerships (MLPs) on the public markets. MLPs are great for individual investors due to their high distributions and preferential tax treatment. At current levels, KMP is yielding 5.44% and has risen more than 22% in the last year. KMP has a beta of 0.39, adding to its defensive profile.
Reynolds American (NYSE: RAI) - The cigarette business may not be flashy, but it is consistent and profitable. Reynolds American has surged 24% to $40.76 in the last year and is at a new 52-week high. The stock yields 5.49% at current levels and is not highly correlated to the broader market with a beta of 0.62.
