Investors continue to seek out income stocks that have dividend yields like
growth stock returns, but it usually means hit or miss results. So why not stick
with solid companies with great growth prospects and solid dividends, asks
Richard Young of Intelligence Report.

T. Rowe Price Group ( href="">TROW)

T. Rowe Price was founded 75 years ago. The company enters 2012 on a strong
note, notching record annual average assets under management, annual net
revenue, net income, and earnings per share for 2011.

Assets under management rose to $489.5 billion. The company's popular
target-date retirement funds accounted for $66.9 billion of T. Rowe's assets
under management at year-end.

Running up short-term records is something any company can achieve by taking
on enough risk and debt. But at T. Rowe, management focuses on the quality of
earnings. T. Rowe Price carries no debt. The company also holds $1.7 billion in
cash and mutual fund investments; that's over a tenth of its market

But not only is the fundamental case for investing in T. Rowe Price strong,
the technical case is strong as well. The stock's 50-day moving average has
crossed over its 200-day moving average, and is headed upward. That's a bullish

T. Rowe Price has increased its dividend in each of the last 24 years. Over
the last five years, the dividend has been increased at a compound annual growth
rate of 16%. Buy T. Rowe Price today.

3M Company ( href="">MMM)

This is 3M's 100th year in business and of innovation. 3M uses its research
and development teams to churn out new products for its customers.

One of 3M's newest innovations is an ingenious patch that injects
immunizations using hundreds of micro-needles. The invention allows injections
without intimidating syringes.

3M is adept at building on its own innovations. To create the micro-needle
patches, 3M repurposed microreplication technology it had pioneered to enhance
the visibility of reflective road signs.

3M's breakout over its 50-day moving average is a strong signal. Buy.

Illinois Tool Works ( href="">ITW)

The simple 80/20 business model at Illinois Tool Works generates success.
It's called the ITW Toolbox.

The system behind the Toolbox is to focus investment and resources on the 20%
of subsidiaries that generate 80% of revenues. Then focus on the 20% of
customers that generate 80% of the revenues. If you can keep focused on these
main drivers of success, the company will prosper.

The strategy is working. Over the past 25 years, ITW has provided
shareholders with a compounded annual return of 15%. The stock's sharp jump
above its 200-day moving average is also a bullish sign. Buy.

Sysco Corp. ( href="">SYY)

America's largest foodservice company is Sysco, which operates out of 180
locations nationwide. Sysco serves around 400,000 customers including hospitals,
schools, restaurants, and hotels.

My relative strength chart for Sysco shows a positive trend developing.

Plum Creek Timber ( href="">PCL)

Prices for lumber are improving after a big drop in early 2011. Plum Creek
took advantage of the increased export demand from China last year by increasing
its harvest by 40%.

As I have written, when lumber prices fall, timber companies can wait out the
hard times with assets (the trees) that keep increasing in value. My price chart
for Plum Creek shows a nice breakout around its 200-day moving average. Buy.

Related Reading:

Utilities Bargains with Steady Yields

Yields from 4 Stalwart Utilities

You Pare Back on Growth Stocks?

Related Articles
  1. Budgeting

    The Honest Company Bundles Review: Are They Worth It?

    Learn more about The Honest Company and its bundle subscription services, which deliver discounted diapers, formula and other baby products to your doorstep.
  2. Investing

    How to Ballast a Portfolio with Bonds

    If January and early February performance is any guide, there’s a new normal in financial markets today: Heightened volatility.
  3. Stock Analysis

    Performance Review: Emerging Markets Equities in 2015

    Find out why emerging markets struggled in 2015 and why a half-decade long trend of poor returns is proving optimistic growth investors wrong.
  4. Investing News

    Today's Sell-off: Are We in a Margin Liquidation?

    If we're in market liquidation, is it good news or bad news? That party depends on your timeframe.
  5. Products and Investments

    The One Thing Your Portfolio Must Always Have

    Portfolio diversification is essential in any situation, but especially so as the market finally returns to fundamentals.
  6. Investing News

    Bank Stocks: Time to Buy or Avoid? (WFC, JPM, C)

    Bank stocks have been pounded. Is this the right time to buy or should they be avoided?
  7. Budgeting

    Blue Apron Review: Is It Worth It?

    Read about one of the top meal-kit delivery services in the United States, and learn more about what it offers and how much it costs.
  8. Stock Analysis

    Why the Bullish Are Turning Bearish

    Banks are reducing their targets for the S&P 500 for 2016. Here's why.
  9. Stock Analysis

    How to Find Quality Stocks Amid the Wreckage

    Finding companies with good earnings and hitting on all cylinders in this environment, although possible, is not easy.
  10. Investing News

    What You Can Learn from Carl Icahn's Mistakes

    Carl Icahn has been a stellar performer in the investment world for decades, but following his lead these days could be dangerous.
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>
Trading Center