5 Stocks to Buy Now!

Call them hot stocks, gainsmakers, or portfolio boosters... these five stocks offer you the opportunity to make handsome gains over the next few months... even the next year. And on top of that, they'll likely continue on their growth paths regardless of what the markets do.

That's because each of the companies listed are in markets with phenomenal growth potential. I'm talking about energy companies, a gold miner... even a company focusing on your personal safety. From small caps to blue chips... to dividend growth stocks, these investments have the potential to return triple-digit gains.

GAINSMAKER #1: A High-Dividend Superstar for a Volatile Market

In times when the economy is struggling, and everybody's pulling their belts just a little bit tighter, wouldn't it be nice to just sit back and collect extra income for doing nothing?

I'm not talking about a scam, or some sort of "fraternal" racket, here. No, collecting these checks is much more simple – and it's legal. In fact, companies are begging to give you a check… They're waving free money around, and all you need to do to grab your very own "Golden Parachute" is step forward.

Have you guessed the game yet? Dividends...

Yep, that dry, old investment technique that's not very sexy and doesn't make you rich in a month can actually provide investors with a modest amount of income.

And in these troubling times, dividends can also limit the losses of a stock's share price.

So while they might not provide the exciting, stellar, triple-digit gains that everyone’s portfolio could use right now, dividends have a power that most investors overlook: Predictability. No other investment vehicle in the market today has that.

Dividends: A Powerful Tool

Here’s another quote from Investopedia that’s incredibly germane to today’s markets: "Unless you find stocks at the bottom of a bear market, there is probably only a handful of worthy income stocks to buy at any given time."

Well, folks, we've been in the worst bear market in decades. That means that good quality stocks – some with high yielding dividends – are at rock-bottom prices.

In short, you couldn't find a better time to create your own High-Yield Dividend Portfolio.

Let me tell you about one company that really fits the bill, and will be writing you checks for many years to come.

A recent Forbes.com article noted ten companies that have been "consistently profitable over the last five years and that… [are expected] to post earnings increases next year."

Using their parameters, I found one with even higher yields.

First let me tell you the criteria I used to find this dividend monster… It’s the same as Forbes':

• Consistent Profitability over Last Five Years
• Expected Earnings Increase Next Year
• Debt to Equity Less than 50%
• Dividend Payout Less than 50% of Net Profits
• Trailing P/E Ratio Less than 20

Of course, with the global financial crisis, many companies have been hurting. Profits are down, and expectations are also down. But that doesn’t mean you can’t find good companies with great dividends right now that will rebound quickly.

What I found was one company that looks pretty good. The results are for the full year of 2008...

First, it must be said that the global economic crisis has companies wary of disclosing any forecast for 2009. It has also knocked revenues back, distorting some ratios, like the dividend payout ratio.

That said, Illinois Tool Works (ITW: NYSE) is still generating excellent dividends. This stock has a solid yield now that the market has whacked its share price across the board. This company is also a large-cap stock, and has international operations or clients.

So let’s look at what ITW does, and what kind of discount you're getting…

High-Yielding Dividend Monster

ITW is a "“diversified manufacturer of advanced industrial technology." What does that mean? It means ITW makes everything from specialty power conversion devices to commercial food equipment to industrial packing materials. In fact, the company is so diverse that it has 825 businesses in 52 different countries.

Don't let the name fool you, this company is a global leader.

I won’t beat around the bush… revenue and income are down in the first half of 2009 compared to the first half of 2008. In a way, that’s to be expected with the massive market ramp-up before the global economic crisis. It’s still a hard pill to swallow. A lot of other companies are in the same boat and are just now starting to pull themselves back to profits.

But ITW has maintain its quarterly dividend through this crisis, and the next two quarters will compare well to last year...

Speaking of dividends, of course:

ITW offers a regular quarterly cash dividend of $0.31. The most recent dividend was paid out on July 14 to shareholders on record before June 30, 2009. That’s a $1.24 annual bonus per share.

At current prices, that’s nearly a 3.1% yield for the year.

It’s important to note that this announcement means the company is not decreasing its dividend from the previous quarter. This is key in today’s economic situation because struggling companies have been slashing dividends in order to save money.

With a 3.1% dividend yield, ITW is showing its strength and commitment to its shareholders. Now that’s a nice "Thank you."