yearly highs for each stock and dividing by the reported earnings that year. Second, we want to make sure a company’s debt-to-total-capital ratio is no more than 50%. We look for companies with steady dividends, a sign that business is good enough for management to want to share profits with stockholders.
Q: Using your strategies, and looking at long-term value, what looks good right now?
Eley: We continue to favor oil and financial stocks that look good in this environment. And, finally, Dow Chemical and AT&T look particularly undervalued.
|
STURDY STOCKS |
|||
| Company |
Exchange:Symbol |
Price | Yield |
| Amoco |
NYSE: AN |
89.81 | 0.031 |
| Chevron |
NYSE: CHV |
79.25 | 0.029 |
| Exxon |
NYSE: XON |
64.00 | 0.025 |
| Cigna |
NYSE: CI |
177.00 | 0.018 |
| First Chicago |
NYSE: FCN |
85.34 | 0.020 |
| J.P. Morgan |
NYSE: JPM |
125.44 | 0.028 |
| Dow Chemical |
NYSE: DOW |
100.75 | 0.034 |
| Philip Morris |
NYSE: MO |
45.44 | 0.035 |
| AT&T |
NYSE: T |
57.34 | 0.023 |
| [*] As of 12/5/97 | |||



