5 Top Dow Stocks for Investors: IBM, JNJ, KO, MMM, UTX

A look at some of the highest rated stocks in the Dow industrials suggests that while stocks in general are having a difficult time, there are still a number of blue chip names that, according to our research, are still likely to be better investments than the average stock in a year's time.

When times get tough, it is often the smaller stocks, the stocks that investors are counting on for growth, that are most likely to disappoint. When growth slows, not only do investors turn to so-called "recession beater" stocks, stocks that come from companies that provide goods and/or services that consumers will need and pay for regardless of the state of the economy. Investors also tend toward the larger, most established companies that are believed to be better able to withstand the pressures of a weak stock market and a less vigorous economy.

The five stocks in today's report certainly fit into this category. By selecting stocks from among the Dow industrials, we know that we are choosing from among the bluest of blue chips, the stocks that have stood the test of time and tend to be favored by institutions and other major investors.

And by adding our Long Term PowerRatings, we can not only get the bluest of the blue, but the best of the blue, as well. Our Long Term PowerRatings help investors see which stocks have the best historical edges, based on our research into stock price behavior between 1995 and 2007.

For example, all five stocks in today's report have Long Term PowerRatings of 8. We found that stocks with Long Term PowerRatings of 8 were higher one year later more than 74% of the time. Compare this to the average stock, which was higher one year later less than 68% of the time.

More than that, we found that 8-rated stocks were not just more reliable than the average stock. Stocks with Long Term PowerRatings of 8 have also been better performers than the average stock according to our review of thousands of simulated stock trades over the past 10-12 years. Specifically, we found that 8-rated stocks tended to gain more than 17% in a year's time compared to between 12-13% for the average stock.

Let's take a look at the stocks – along with some recent news to put the stocks in context.

International Business Machines (IBM@IBM | Quote | Chart | News | PowerRating) Long Term PowerRatings 8.

IBM beat analyst's estimates by 20 cents back in its April announcement, with revenues that were up more than 11% year over year. The stock has a P/E of 15.60 and has a modest dividend yield of 1.70.

Johnson & Johnson (JNJ@JNJ | Quote | Chart | News | PowerRating) Long Term PowerRatings 8.

Johnson & Johnson beat analyst estimates by six cents this spring in its most recent earnings announcement. Revenues were up more than 7% year over year. The company will next report earning in mid July, with analysts expecting EPS of $1.12. Johnson & Johnson has a P/E of 16.00 and a dividend yield of 2.90.

Coca-Cola Company (KO@KO | Quote | Chart | News | PowerRating) Long Term PowerRatings 8

Beating analyst estimates by four cents in its April earnings announcement, Coca-Cola Company also enjoyed strong revenue growth of nearly 21% year over year. The stock has a P/E of 19.50 and a dividend yield of 2.90.

3M (MMM@MMM | Quote | Chart | News | PowerRating) Long Term PowerRatings 8

3M last reported earnings in April, beating analyst estimates by three cents. The company also reported year over year revenue gains of nearly 9%. 3M will next report earnings on July 24 before the market opens, with analysts expecting EPS of 1.35.

United Technologies (UTX@UTX | Quote | Chart | News | PowerRating) Long Term PowerRatings 8

Rounding out our report on five of the best stocks in the Dow industrials for investors is United Technologies. Reporting revenue growth of 11.6% year over year in its April earnings report, UTX also beat estimates by four cents. The company's stock has a P/E of 13.80 and a dividend yield of 2.10.

Looking for more long-term solutions to your investing problems? Don't let the volatility of this market lead you to miss out on stocks you'll be glad to have bought a year from now.

Learn what you need to know as an active investor looking to invest in companies with a history of financial strength and a track record for growth. Click the link above or call us at 888-484-8220 extension 1 to get your copy of the "5 Secrets to Successful Stock Investing" today!

David Penn is Senior Editor at PowerRatings.net.