NEW YORK (TheStreet) -- For long-term investors, higher taxes and worries about the fiscal cliff offer a chance to buy quality stocks at a discount. The winds of change in Washington may change direction from time to time, but for long-term investors the time to enter is when there is blood on the street.I have had more than my share of people asking for a list of stocks to own in 2013. I limited my list to stocks with large, increasing dividends that are appropriate to buy and forget about. Predicting a year in advance is no small endeavor, especially if you want any hope of getting it right. Difficult doesn't mean impossible, however. It's difficult to predict short-term moves, too, but historical data allow us a way to peek into the markets of 2013. Unsurprisingly, dividend-paying stocks tend to outperform over the long run. Stocks with price-to-earnings ratios under 20 also tend to outperform the latest craze. Emotion plays a short-term role in valuation, and we can measure emotion, in part, with the PE ratio. GLW Dividend Yield data by YCharts
Corning GLW Background: Corning creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning manufactures optical fiber, cable and photonic products for the telecommunications industry; and high-performance displays and components for television and other communications-related industries. 52-Week Range: $10.62 to $14.62 Price To Book: 0.9 Earnings Payout Percentage: 24% Glass may not initially appear sexy, but after you look at the profits the view becomes more exciting. Corning incorporates everything you want for a long-term "buy it and forget about it" type of hold. Corning has an oversized dividend that is likely to increase, a large R&D budget, and the company is not sitting on its laurels. Corning may begin to realize inroads into the automobile industry with products for windows and windshields. The dividend is small enough that investors may reasonably expect increases in the payout. Corning currently has an annualized dividend of 36 cents, yielding 2.8%. In the last month, the stock has really moved higher with a 67.4% increase. Over half the analysts covering Corning rate it as a buy or strong buy. In the last 52 weeks, the shares are about even, with a small gain of 2%. Corning has an average analyst target price of $14.62. The last reported short interest is only 1.7% of the average trading float. Short sellers are all but avoiding Corning, which is just what we want as investors. GLW Payout Ratio TTM data by YCharts
KO Dividend Yield data by YCharts
Coca-Cola KO Background: Coca-Cola Company engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Coke is the most common soft drink I came across in my travels to China. 52-Week Range: $33.28 to $40.67 Price To Book: 5 Earnings Payout Percentage: 52% Coca-Cola pays out $1.02 annually in dividend payments. The yield based on a recent price is 2.8%. In 2009, when many companies reduced or stopped their dividends, Coca-Cola not only continued distributions, but increased the amount. If history is our guide, the current 2.8% yield should be considered more of a starting point than future expectations. KO Payout Ratio TTM data by YCharts
WFC Dividend Yield data by YCharts
Wells Fargo WFC Background: Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance services through stores, its Internet site and other distribution channels across North America as well as internationally. Wells Fargo set the bar for other banks in risk management. While many other banks experienced an implosion in book value during the housing crisis, Wells Fargo's risk controls ensured investors were protected. 52-Week Range: $27.08 to $36.60 Price To Book: 1.3 Earnings Payout Percentage: 25% The company currently pays 88 cents per share in dividends for a yield of 2.6%. Dividends are lower from early 2009 but unlike many other financial institutions, dividends, albeit smaller, were not halted. Investors can count on the Federal Reserve to keep banks healthy until the economy turns around. WFC PE Ratio TTM data by YCharts
INTC Dividend Yield data by YCharts
Intel INTC Background: Intel designs, manufactures, and sells integrated digital technology platforms primarily in the Asia-Pacific, the Americas, Europe and Japan. Intel is my "on a limb" suggestion. 52-Week Range: $19.23 to $29.27 Price To Book: 2.1 Earnings Payout Percentage: 37% Shares have fallen since April and are down for the year. The fall for previous shareholders is an opportunity for new investors. The opportunity comes from investors who are not paying attention to the long-term theme. The long-term theme is a company that took a few arrows recently but is in great shape to exploit new markets. It's a huge mistake to discount the ability of Intel to adapt to and dominate new markets. New markets include increased use of smart devices -- and I don't limit devices to smartphones. Expect everything we touch to become smart or smarter. Cars, homes, TVs, other appliances and more will increasingly come together. INTC Payout Ratio TTM data by YCharts
GE Dividend Yield data by YCharts
General Electric GE Background: General Electric is one of the largest and most diversified industrial corporations in the world. GE is engaged in developing, manufacturing and marketing a wide variety of products for the generation, transmission, distribution, control and utilization of electricity. 52-Week Range: $17.72 to $23.18 Price To Book: 1.8 Earnings Payout Percentage: 52% GE is currently trading near the 200-day moving average. The weekly chart is more bullish but, pushing the technical aside, it's hard for me to find many companies I am more bullish on from a long-term hold point of view. GE walked up to the edge of the abyss in 2009 and was forced to cut dividends. Before 2011, GE started increasing the dividend payout and this month increased the amount to 19 cents per quarter. GE's 76 cents a year in dividends is a yield near 3.7%. The current yield is attractive relative to other stocks, however. The real investment story is future dividend increase prospects. I wrote about GE recently in this dividend-focused article. Revenue and earnings are once again meeting or exceeding investor expectations, and GE is a dominant presence around the world. The payout ratio based on next year's estimates and the current dividend is under 50%. GE Payout Ratio TTM data by YCharts
At the time of publication the author had no position in any of the stocks mentioned. Follow @RobertWeinstein This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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