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reddingrunner (92.15)

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? 

4 Comments – Post Your Own

#1) On February 06, 2012 at 6:44 PM, awallejr (28.32) wrote:

CAPS does account for dividends and can grow points quite nicely the longer you hold. 

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#2) On February 06, 2012 at 7:02 PM, truthisntstupid (78.94) wrote:

1) SCG can even be better than you think. If you go to SCANA.COM and have them send you their prospectus for their direct stock purchase plan, every penny you send them buys stock...NO TRANSACTION FEES, NO COMMISSIONS! 

SCANA acts as its own transfer agent, so there are no fees going to Computershare or anyone else.


2) Dividends and CAPS


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#3) On February 07, 2012 at 3:37 AM, ikkyu2 (98.25) wrote:


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#4) On February 07, 2012 at 1:29 PM, reddingrunner (92.15) wrote:

thanks for correcting me; now I can add SCG to CAPS.

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