Underlying support for stock prices remains positive, especially if oil prices stabilize near current levels and the dollar does not rise a lot further, said Kate Warne, investment strategist for Edward Jones. ‘This is the time to position your portfolio for better growth in 2016 and to not pay so much attention to all the negative headlines,’ said Warne. ‘We also think the consumer is going to be okay this holiday season.’ Warne is bullish on Paris-based oil services giant Schlumberger (SLB), which has seen its shares fall 8.5% so far in 2015. She said the company has slimmed itself down in the face low oil prices and has the capacity to come back once the cost of crude comes back. Warne also likes Schlumberger’s 2.6% dividend yield and expects it to grow its dividend 8% over the next five years. ‘Even with $40 oil, the cost cuts that they have taken have given them the ability to generate earnings and dividend growth,’ said Warne. Warne is also positive on Lowe’s (LOW), up 7% this year, saying the stronger housing market and solid consumer spending will lift Lowe’s sales growth. Lowe’s sports a dividend yield of 1.6% and Warne expect dividends to grow about 14% annually. The company has paid dividends for 54 consecutive years, with a 22% increase earlier this year. ‘They have less online competition because consumers are actually buying the goods and taking them home,’ adds Warne.
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