Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Great Stocks for Your Holiday Shopping List

Black Friday marks the beginning of the holiday shopping season. Just as consumers begin targeting items they'd like for their holiday wish lists, investors can take this time to pinpoint the great stocks they've been hoping for all year long. With the S&P 500 index up more than 20% this year, investors' attention now turns to whether 2014 can be just as strong.

Here are three highly profitable businesses that have something to offer for both growth and income investors. These three companies are dedicated to providing shareholders with great returns, and should definitely be on your holiday shopping list.

Find growth under the tree
Consumers are still holding their purse strings tight. And as we head into the holiday shopping season, consumer confidence appears to be waning. The monthly consumer confidence index has declined for two months in a row due to the continued sluggish labor-market recovery.

As a result, consumers are feeling less confident in their financial outlook, which means dollar stores such as Dollar Tree (NASDAQ: DLTR  ) stand to benefit. This is evident in Dollar Tree's results this year, which are quite strong. Year to date, sales are up 9.5%, and same-store sales, which measures sales at locations open at least one year, are up 3.1% in the same period. Going forward, Dollar Tree expects momentum to continue. Full-year 2013 sales are expected to clock in around $7.9 billion, which would represent a 7% growth rate over 2012.

Dividends are a great stocking-stuffer
For the investor who prefers the volatility-reducing quality of steady dividend payments, health care giant Johnson & Johnson (NYSE: JNJ  ) can be a core holding. Johnson & Johnson is organized into three main operating segments: medical devices and diagnostics, pharmaceuticals, and consumer health care. And as you probably already know, each segment is hugely profitable.

With $27.4 billion in revenue last year, J&J's medical-devices and diagnostics segment is the largest medical-technology business in the world. Meanwhile, the consumer segment contains several world-class brands that will be found in nearly every household, including Band-Aids, Listerine, and Tylenol. In all, J&J maintains the world's sixth-largest consumer health care business. Finally, J&J's pharmaceutical segment performed strongly last year as well, increasing revenue by 4%.

Consider that J&J generates approximately 70% of its revenue from products that hold the No. 1 or No. 2 global market positions. J&J has delivered 29 consecutive years of adjusted earnings increases and uses its profits to fund its 2.8% dividend. Even better, J&J has increased its dividend for 50 years in a row.

In the pursuit of strong dividends, consider consumer products giant Procter & Gamble (NYSE: PG  ) , which is also a dividend-paying colossus that holds a slew of strong brands. Just a few of P&G's world-class brands include Pampers, Tide, Gillette, and Crest. Half of these 50 "Leadership Brands" generate more than $1 billion in annual sales each, which means P&G has a well-diversified portfolio.

P&G's underlying results speak for themselves. The company generated $84 billion in fiscal 2013 net sales, and grew diluted earnings per share by 5%. P&G had a solid first quarter as well, growing EPS by 8%. Not surprisingly, P&G uses its profits to reward shareholders with rising dividends. This year marks the 123rd quarter in a row of consecutive dividend payments from P&G. Furthermore, P&G has increased its dividend for 57 years in a row and yields 2.8%.

These three stocks are great gifts for any investor
As we enter the holiday shopping season, it's a good time for investors to think about which stocks are on their wish lists. No matter if you're a growth investor, an income investor, or somewhere in between, there are great stocks out there. Dollar Tree, Johnson & Johnson, and Procter & Gamble are strong businesses that reward their shareholders with solid growth and capital appreciation. 

It's Never Too Late to Pick a Winner
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2745649, ~/Articles/ArticleHandler.aspx, 10/1/2016 4:40:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 19 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
DLTR $78.93 Up +1.57 +2.03%
Dollar Tree Stores CAPS Rating: ***
JNJ $118.13 Up +0.86 +0.73%
Johnson and Johnso… CAPS Rating: *****
PG $89.75 Up +1.52 +1.72%
Procter and Gamble CAPS Rating: ****