reddingrunner (94.97)

The safest stock?

February 06, 2012 – Comments (4) | RELATED TICKERS: SCG , AAPL , BIP

Stocks are unpredictably volatile, bonds are losers (next 5-10 years), MLP's and commodities are risky. What does one buy if the goal is to preserve capital AND keep a step or two ahead of inflation?

Many would say go with dividend stocks, but a stock that pays a 4% dividend and is subject to the ups and downs of the market does not guarantee a good's night sleep.

Utilities probably will not have as good a year this year as last, but after looking over the obvious candidates I really like SCG.  Why?

4.3% dividend.

Has outperformed the S&P, with less volatility, over 1, 2, 5 and 10 years.

Is in an economically strong, growing area (Carolinas).

Has the "coveted" 5-star CAPS rating. 

I considered AAPL and BIP and actually prefer them overall, but for a good, solid safe investment I vote for SCG.  Unfortunately, I'm not going to put it in CAPS because CAPS doesn't account for dividends and I expect the market as a whole to be bullish.  If I'm right about that, SCG will underperform for awhile.  But sometimes I'm wrong, even if I did call the Super Bowl right.  :)

What do you think is the 'safest' (least likely to underperform S&P + most likely to reasonably outpace inflation) investment at this time?