ALCOA INC. $12 - New York symbol AA

ALCOA INC. $12 (New York symbol AA; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.1 billion; Market cap: $13.2 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.0%; TSINetwork Rating: Average; www.alcoa.com) is doubling production of aluminum truck wheels at its plant in Hungary. Demand for these wheels is strong, as they are much more resistant to rust and corrosion than steel wheels. Engineered products like these also cut Alcoa’s reliance on selling less-profitable bulk aluminum.

The company will spend $13 million to upgrade the facility. That’s equal to 4% of the $357 million, or $0.33 a share, that Alcoa earned in 2013. It expects to complete the project in early 2015.

Alcoa is a buy.

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Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

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Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

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Energy Stocks

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