5 $200-Plus Stocks Worth Every Cent to invest in 2013

There are some low-priced stocks out there that really catch Wall Street’s fancy. There’s some kind of love affair with a cheap stock — with investors fooling themselves into thinking that it’s easier for a $1 stock to get to $2 than it is for a $100 stock to get to $200.
But the bottom line is still the bottom line. A stock succeeds or fails on the merit of its business, not logistical nonsense like shares outstanding or the headline value of stock.
Take the 50-to-1 stock split that Berkshire Hathaway (NYSE:BRK.B) executed in 2009 to bring its “Baby B” stock down from more than $3,000 a pop to a manageable amount under $100 per share. Did it change the company? Did Warren Buffett become any smarter or dumber as a result?
And on a more basic level, you make the same amount of money owning one share of a $3,000 stock as you do with 3,000 shares of a $1 stock. Either way, you have the same amount of money invested — it’s just divided up differently.
So if you’re afraid of high-priced stocks or in love with bargain picks, take a moment to consider these five stocks with $200-plus price tags — and the potential to move even higher in the months ahead:
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - Intuitive Surgical (NASDAQ:ISRG) makes the innovative da Vinci surgical systems that have revolutionized operations used to treat cancer and heart disease, among other things. Without getting too technical, Intuitive Surgical gear allows doctors to operate on a patient with fewer incisions, speeding up recovery time and reducing the risk of complications. ISRG is up 400% in five years — taking the recession in stride thanks to powerful growth as its technology has caught on and as aging baby boomers create increased demand for surgeries. The company has seen nine straight quarters of year-over-year profit increases and has seen a streak of revenue increases even longer than that. Health care is one of the few growth areas in the American economy, and ISRG is well positioned to capitalize on this trend.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - Apple (NASDAQ:AAPL) is the $400 gorilla of Wall Street that dares you to bet against it. Yeah, shares dropped 15% from October to November — but Apple has bounced back in a big way, hitting an all-time high Wednesday, and seems ready to move even higher. The iPad 3 could come as recently as February, if you believe the rumors, and Apple clearly is looking to maintain its stranglehold on the tablet market. Wall Street is admittedly ga-ga for Apple, so you have to beware of the hype. Still, a forward price-to-earnings ratio of less than 11 hints that there still is time to buy Apple for the continued march upward.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - MasterCard (NYSE:MA) is at the center of a macro trend that is tough to ignore: the death of paper money. Per-swipe transactions continue to rise even in America, since as much as 40% of transactions in the U.S. still take place with cash or paper checks. But the real growth for MasterCard is coming from emerging markets, where a rising middle class is getting access to bank accounts and debit cards. Remember, MasterCard is not a debt issuer, but more of a toll-taker on the e-commerce superhighway. Every time you make a purchase, MasterCard gets paid — and it’s hard to believe that the number of people using plastic is going to decline anytime soon.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - Priceline (NASDAQ:PCLN) and its iconic pitchman William Shatner have taken over the travel business with an innovative “name your own price” model for airfares, hotels, rental cars and a host of other services. However, the real growth isn’t at home from people booking trips to Florida to see the grandparents — it’s internationally. PCLN offers hotel room reservations in about 100 countries and more than 40 languages. That has allowed for big growth despite the fact that Priceline is competing with internet travel sites like Kayak that have popped up in recent years. Profits are on track to double from 2010 to 2011, and grow an additional 25% in 2012.
5 $200-Plus Stocks Worth Every Cent to invest in 2013 - W.W. Grainger (NYSE:GWW) is a rather un-sexy company when compared to the others on this list. It is engaged in “facilities maintenance,” a glorified way to refer to distributing pumps, tools, motors and other gear that allow businesses to … well, do business. That might not sound exciting, but a 60% surge in GWW stock since the summer is worth taking note of. The company has seen eight consecutive quarters of year-over-year revenue increases. EPS numbers jumped 29% from 2010 to 2011 and are set to surge another 17% in 2012. W.W. Grainger is expanding in China and Panama, too, which could add even more momentum to shares. You might want to wait for a pullback after the red-hot run recently, however.

The 5 Best ETFs to Invest for 2013

Buying targeted dividend ETFs is easier than buying high-yield dividend stocks.
Dividend stocks were red-hot last year as the über-volatile market sent investors headlong into what has traditionally been the most stable segment of the equity universe. And while it isn’t likely we’ll see quite as much volatility in 2012 as we did in the final four months of 2011, powerful unknowns, such as Europe’s unresolved debt issues and China’s economic slowdown, could put real pressure on global economic growth — and by extension, the fate of the world’s equity markets. That means we could be in for an extended period of volatility and more capital inflows into the dividend space.
As investors, we can buy a well-thought-out group of solid, high-profile dividend stocks to gain exposure to the segment. But it’s easier to buy targeted dividend ETFs that already contain baskets of the best — and highest-yielding — dividend-paying securities.
The 5 Best ETFs to Invest for 2013 - iShares Dow Jones Select Dividend Index
The iShares Dow Jones Select Dividend (ETF) (NYSE:DVY) is an ETF pegged to the Dow Jones index bearing its name. This ETF really saw gains during the final three months of 2011, perhaps the most volatile time for stocks all last year. The fund surged 11% over that period, and that gain came with a 3.44% annual yield (as of Jan. 13). DVY counts among its top holdings such stellar corporate names as Lorillard (NYSE:LO), Chevron (NYSE:CVX), Kimberly-Clark (NYSE:KMB) and McDonald’s (NYSE:MCD), to name just a few. The fund’s expense ratio is only 0.40%, making the cost of owning these high-end performers very attractive.
SPDR S&P International Dividend
International stocks were by no means the best performers last year, but that didn’t stop the SPDR S&P International Dividend (ETF) (NYSE:DWX) from delivering a solid dividend yield of 4.02%. DWX’s expense ratio is 0.45%, just slightly higher than the domestic-equity focused DVY. For this modest cost, you get diversified exposure to international dividend stocks in income sectors such as telecommunications, utilities and financials.
The 5 Best ETFs to Invest for 2013 - WisdomTree Equity Income Fund
WisdomTree Equity Income Fund (NYSE:DHS) enjoyed a good year, and it performed particularly well in the final quarter. The fund is up almost 8% over the past three months, and that comes with an annual yield of 3.31%. Its holdings are based on WisdomTree’s Equity Income Index, which reads like a Who’s Who of dividend stalwarts. Companies such as AT&T (NYSE:T), General Electric (NYSE:GE), Johnson & Johnson (NYSE:JNJ) and Procter & Gamble (NYSE:PG) top the list of payout performers you get when you own DHS. And at an expense ratio of just 0.38%, you get these great companies on the cheap.
The 5 Best ETFs to Invest for 2013  - iShares S&P U.S. Preferred Stock Index Fund
The iShares S&P U.S. Preferred Stock Index Fund (NYSE:PFF) is an ETF that gives you exposure to preferred stocks. I like this fund primarily because of its outstanding 6.99% yield, but I also like it because it diversifies your income portfolio by owning the preferred shares of some of the world’s best companies. HSBC Holdings (NYSE:HBC), General Motors (NYSE:GM), Wells Fargo (NYSE:WFC) and many others have issued high-yield preferred shares, and the easiest and cheapest way to own these equities — at an expense ratio of just 0.48% — is to have PFF in your portfolio.
The 5 Best ETFs to Invest for 2013 - Claymore/Zacks Multi-Asset Income Index
Clamymore/Zacks Multi-Asset Income Index (ETF) (NYSE:CVY) is perhaps the most eclectic fund of my five best ETFs for 2012. CVY has had a great run over the past three months, vaulting nearly 6% while offering an annual yield of 5.42%. One huge reason to love CVY is that it contains a host of different types of high-yield securities. In addition to domestic and international stocks, the fund holds real estate investment trusts, master limited partnerships, closed-end funds, Canadian royalty trusts and traditional preferred stocks. Owning CVY gives you the best of the best when it comes to income securities at a quite acceptable 0.78% expense ratio