2 High-Yield Stocks to Buy in October Without Any Hesitation
Investors aren't giving Medtronic credit for its turnaround, and McCormick is gearing up for a major business expansion.
Overview
I prefer to buy historically well-run businesses when they have historically high yields. I acquired medical device giant Medtronic (NYSE: MDT) a few years ago, leaving me a little early to the business upturn that is happening right now. I've been buying flavor specialist McCormick (NYSE: MKC), recently doubling my stake as the company laid out some of the benefits it expects from its planned acquisition of Unilever's (NYSE: UL) food business. I think both are solid long-term dividend buys as October gets underway.
My investment approach is to first focus on companies with long histories of dividend increases. Medtronic just hit 49 years, one year shy of Dividend King status. I believe a strong dividend history is a quick way to find well-run businesses. Then I look for companies with historically high yields, which I think indicates their stocks are on sale. Medtronic's yield is toward the high end of its historical range.
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Originally published at www.fool.com.