I love consistency of that sort, especially when so many other outfits (banks, for instance) have disappointed shareholders lately by slashing dividends. Still, I'm even more impressed with PEP's generous dividend yield — currently around 3.3%, a level unseen in any previous year since 1985.

When safety and rapid growth combine with a lofty absolute dividend yield, you've got a bargain!

Blue Chip Stock #3: Procter & Gamble (PG)

Arguably the world's greatest consumer-staples franchise, Procter & Gamble (PG) boasts an astonishing 23 brands with annual sales of $1 billion or more.

If you don't pour Tide into your washing machine or Swiffer your floors, you may be shaving with a Gillette razor, munching on Pringles or brushing your teeth with Crest. What's more, the company is building on its commanding lead by spending $5 million a day on research and development.

It's not just clever marketing that keeps this machine purring. And a money machine it is: In mid-April, PG boosted its dividend by a handsome 10%, the 53rd consecutive year in which Procter has lifted its payout.

Over the past 10 years alone, PG has tripled its dividend. Yet the stock is trading at its lowest P/E ratio, and its highest dividend yield, of any year since 1989.

Why rummage for junk when the finest merchandise comes this cheap? Current yield: 3.3%.

In the June issue of Profitable Investing, Richard Band recommends two more stocks poised to deliver market-beating profits over the balance of this year. Get the names of these two stocks, plus complete buy instructions for the three stocks mentioned above, when you join Profitable Investing risk-free today.
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