You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
The big-stock indexes are at or close to record highs, but shares of high-quality, well-known companies continue to look relatively cheap. And it looks like interest rates aren't going higher soon. This means it's prime time for blue chips.
That's the word from Standard & Poor's in its annual forecast issue, published this week. The views are generally in line with Kiplinger's projections. SP chief investment strategist Sam Stovall foresees modest gains for stocks next year. It would be a bit of a downer after 2006's strength, but it's still positive. Kiplinger's forecasts returns of 7% to 12% in 2007.
SP offers the following six ideas for 2007, based on its preference for companies with high levels of free cash flow (cash flow from operations left over after capital expenditures) relative to share price, as well as a history of share repurchases. Each of the analysts' selections also earn high marks from SP for consistent earnings and dividend growth.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Bemis (BMS) isn't a household name, but you'll likely find its products in your refrigerator. Its main business is making packaging materials for fresh foods, such as meat and cheese. The company has plants all over the world and has boosted dividends for 23 years in a row. The stock, which closed at $34.30 on Dec. 15, yields 2.2% and trades at 17 times the 2007 consensus earnings estimate of $2.07 per share, according to Thomson First Call. SP expects Bemis to hit $40 over the next 12 months.
General Mills (GIS; $57.65) is the second-largest maker of breakfast cereals. Besides Cheerios and Wheaties, brands include Betty Crocker, Bisquick, Green Giant, Yoplait and Pillsbury. The company also has joint ventures, including one with Nestlé, through which it sells products internationally. The stock sports a P/E ratio of 17.9, based on earnings estimates of $3.22 per share for the four quarters ending Nov. 2007. SP's one-year target price is $61.
TJX (TJX; $29.05) is spiffing up its off-price T.J. Maxx and Marshall's stores. Its other retail shops include A.J. Wright, Bob's Stores and HomeGoods, plus T.K. Maxx in Europe and Winners and HomeSense in Canada. In all, it runs 2,400 stores. Shares sell for 16 times estimates of $1.87 per share for the fiscal year that ends January 2008. SP target price: $33.
Toro (TTC; $47.46) helps keep the grass green in golf courses and football fields, and possibly your own back yard. The maker of lawn mowers, irrigation equipment, aerators, yard tools and other turf maintenance gear keeps developing innovative products. The stock sells for 14.6 times estimates of $3.26 per share for the fiscal year that ends October 2007. SP expects it to reach $56 over the next 12 months.
Sunoco (SUN; $68.26) is the second-largest independent oil refiner in the U.S, with gas stations in the East Coast and the Midwest, near its refineries. A share buyback program has reduced the number of shares outstanding by 25% since the beginning of 1999, according to Morningstar. The stock's P/E is 9.6, based on estimated 2007 company earnings of $7.09 per share. Shares yield 1.5%, and SP's target price is $86.
Kimberly-Clark (KMB; $67.23), maker of Kleenex, Huggies and Scott tissues, is in the midst of a major cost-cutting program that should improve earnings starting in 2007. SP's analysts like the company's expansion into new categories (such as toiletries for babies), as well as a focus on developing countries. Kimberly-Clark sells its goods in 150 countries. It returned $2.3 billion to shareholders last year through dividends and share repurchases and has increased its dividend 34 consecutive years. Analysts estimate 2007 earnings of $4.19 per share, a P/E of 16. The stock yields 2.9%. SP expects it to hit $76 over the next year.
-
The New Reality for EntertainmentThe Kiplinger Letter The entertainment industry is shifting as movie and TV companies face fierce competition, fight for attention and cope with artificial intelligence.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
Betting on Super Bowl 2026? New IRS Tax Changes Could Cost YouTaxable Income When Super Bowl LX hype fades, some fans may be surprised to learn that sports betting tax rules have shifted.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
