Getting Defensive

Today I want to finish up a look at defensive stocks as defined by Ben Graham and slightly tweaked by yours truly. We are basically looking for non-financial companies with a long history of profits and dividends to buy on weakness and hold for an extended period of time. On Monday, I mistakenly reported that the screen only found four stocks that qualified. The good news is that the screen was set incorrectly and need a tweaking -- when corrected, the total number of qualifying stocks rose to by 25%. The bad news is that only five stocks still made the grade for a defensive portfolio.

Reliance Steel and Aluminum (RS) shares have pretty much tracked the market over the past few years, but the stock is cheap and will see strong growth as the economy continues to attempt a full-fledged recovery. The company provides metal processing services and distributes steel, aluminum, brass, copper and specialty metal products across a wide range of industries. They have historically grown by acquisition and this year will be no different as the company recently announced the purchase of Florida-based Metals USA Holdings (MUSA)....545 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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