Stocks to watch

My recommendations are the following:

Claymore Dividend growth ETF. CDZ on the Toronto exchange. Nobody ever lost money long term in companies that increase their dividends and this one is an ETF full of companies that do just that. It takes the stress and work out of researching and rebalancing. On a pullback I will definitely be adding this to my portfolio.

Telefnica. TEF on the NYSE. This company has one of the largest dividend yields at 7% and its growing thanks to their exposure in latin America. This Spanish stock has recently been hurt due to the debt worries in Europe but they are faily diversified through ownership of O2 which is in the UK amongst other countries. Forward P/E is just over 9, making it cheap.

Vodafone. VOD on the NYSE. Almost identical to the above except the growth here comes from India and China, with a kicker that they own 40% of Verizon. They should start collecting dividends from that soon and I believe that is currently not reflected in analysts estimates.

Check back for more picks later.

Dr A Willis PhD

Quantitative analyst