My timing was off a bit with this stock, which I can surely acknowledge. However this is one company I think everyone needs to add to their portfolio, especially at this price. The fundamentals, and technicals, are right in line.

I was far too early to call this one on January 23, but the points I outlined in that post have thus far proven to be a big driver of success for Philip Morris $PM. The supercharged emerging market play on a very popular product couldn’t be wrong. Neither can a 5% dividend yield.

I can see this stock going higher before the company releases its earnings on July 23. The weak dollar rally that the US stock markets have been thriving upon is going to really help Philip Morris, which only does business overseas. Its profits, when brought back to the US, are going to buy a lot more, and I can foresee an excellent quarter and even better forecasts from PMI.

I liked it at $35, I like it just as much at $43 and I’ll probably even like it at $50. The tailwinds behind this stock are simply too strong to ignore.

From a technical standpoint there are a few clouds in the sky, however. This stock does not handle an oversold RSI figure very well, and rarely trades out of the 30-70 range naturally set in any Wilder calculation. As such, a small consolidation here should be expected, though I’m looking for a bottoming formation on the $42 level before heading higher. The cup needs a handle, if you catch my drift.

Regardless of the technicals, this is one for the long haul. With the weak dollar coming back, this stock will only do better. And who can pass up a 5% yield? Not me, especially not with the opportunity for excellent capital gains.

By Jordan of the Investing Blog

Don’t limit yourself to U.S. blue chips.

American blue chips have been the backbone of many investors’ portfolios for the past century. In fact, Coca-Cola (NYSE: KO), Merck (NYSE: MRK), and Tootsie Roll (NYSE: TR) were three of the best S&P 500 stocks from 1957 to 2003, according to research by Wharton professor Jeremy Siegel. For some, these stocks helped build sizable fortunes.

Though some domestic blue chips have slashed their dividends in recent months, those with strong balance sheets and plenty of free cash flow to support their payouts will continue to play an important role in our portfolios into the 21st century.

But restricting yourself to just American blue chips now would be like entering a prizefight with one hand tied behind your back. To capitalize on the benefits of this century’s best dividend-paying stocks, you need to look outside our borders.

Stamp your passport
Over the past decade — especially the past six years or so — it has become clear that the global economy has become more closely integrated than at any other point in history. Today, capital can find its way to just about any country with relative ease, allowing investors to search the globe for the best available returns.

What’s more, you’re likely to find more companies paying higher dividends abroad. The average dividend yield of the U.K.’s FTSE 100, for example, is near 4.0% — a good bit higher than the S&P 500’s 2.1%. Moreover, the NZX 50 index in New Zealand pays nearly three times the S&P, with an average dividend yield of about 6.0%.

It isn’t even close
Foreign cash cows have been beating up their American counterparts since 2003, even including recent market volatility. A screen on Capital IQ for companies capitalized at greater than $1 billion, with a current dividend yield exceeding 2%, illustrates the profound disparity quite nicely.

Despite the global market downturn, which in many countries has been far worse than here in the U.S., about 40% (57 of 143) of foreign dividend-paying stocks that trade on a U.S. exchange have more than doubled in the past six years. Included in this group areCNOOC (NYSE: CEO) and Rio Tinto (NYSE: RTP).

On the other hand, only 22% (80 of 362) of U.S. companies that meet these criteria have more than doubled since May 2003. Some of the select stocks on this list include McDonald’s (NYSE: MCD) andChevron (NYSE: CVX).

Achtung, baby
There are always added risks to consider (politics, currency, etc.) before investing abroad, but dividend-minded investors stateside will want to note two things in particular.

1. Dividend regularity. Or lack thereof. Foreign-company dividends may be larger, but they’re often less regular in timing and amount. Companies abroad like to pay out a target percentage of earnings instead of a certain dollar value every year. Don’t knock it: Freed from the pressure to lowball their payouts, these companies can pay you more over the long haul.

2.Dividend taxation. Foreign countries (the U.K. is an exception) will scalp your scratch by their going rate. Still, most countries in which you’re likely to invest have tax treaties with the United States (Google “IRS publication 901″ for the complete list), meaning you can claim a credit for the tax withheld. Here’s the rub: Because a credit offsets taxes you would have otherwise paid, it’s smart to hold foreign stocks in a taxable account. In other words, skip the IRA if you’re going abroad.

By Todd Wenning, The Motley Fool via MSNBC