A meandering Dow and an uncertain U.S. economic outlook can give any investor a case of the jitters regarding potential equity plays. Therefore, for those investors who require a little more safety, here are a few dividend-oriented stocks, listed from highest to lowest risk:

Spectra Energy (SE). This largely mid-stream natural gas company is still a relative bargain at roughly $22.50 and its $1.00 annual dividend -- a 4.4% yield, gives you a decent yield and the chance for growth, too.

Here is a common sentiment about the stock market: "No fun at all. As I have said before, I believe it has turned into one big casino largely divorced from its original goal of providing capital to companies who produce something of value."

There's a lot of truth to what "granny" recently said to me in an e-mail. Fortunately she also noted "FYI Granny's up 5.86% + dividends." That would give her a gain of about 10% in the past ten months since I posted Where should granny put $50,000, suggesting a very conservative portfolio for an uncertain time.

Not only has she earned a very nice return, surpassing her CD account by 9.5% (20 fold), but she was able to do so with a great deal less volatility than the overall market most of us have lived through.

Following two days of strong price gains and a heat wave on the East Coast, Consolidated Edison (ED) is poised to break out of a bullish continuation pattern. This could be a great entry opportunity to ride this utility higher.

After hitting a high of $46.45 in January, Con Edison began forming a bullish flag pattern -- a pattern that is characterized by parallel down-trending support and resistance levels. After bouncing the last time off of its down-trending support level at $41.52 in early June, Con Edison has been making a bullish move higher.

We can make this short and sweet: buying utilities pays off in many ways that other investments do not. Utilities pay regular dividend distributions that are higher than most stocks, bonds, Treasuries, and certificates of deposit. In these volatile times, utility stocks add stability to your portfolio and moderate the wild swings. And, here is the kicker that everyone but day traders will appreciate: long term returns beat all of the major indices over time.

The following charts and stocks will further make the case.

In a normal market, the conventional outlook of investing for capital gains applies. But in a not-so-normal market of today -- a market that moves sideways (or worse) for more than a year -- the conventional strategy is not adequate.

I fully expect the bull market to continue this year after a 10% Dow correction, but for those who hold a different view, here are a few, quality, dividend stocks that also offer modest capital gain potential:

BP Prudhoe Bay Royalty Trust (BPT) -- Recent stock price: $88. Annual dividend: $14.45. Simply, BPT boasts a solid operation.

One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."

In reality, my recommendations would be suitable, and perhaps desirable, for many passive investors as well.

The $50,000 is a portion of money Ms. P has set aside to purchase a home, which might happen in six months, but could also be pushed out further, depending on the economy and her situation. Basically, she wants to cover all her bases because she might need the money at any time and does not want to be caught short, while at the same time she would like to generate some revenue without taking any big risks.

Analyst upgrades:

• Barclays believes Disney (NYSE: DIS) is the best positioned company for "media's digital evolution." The firm upgraded shares to Overweight from Underweight and has a $32 target on shares.
  
• Oppenheimer upgraded Semtech (NASDAQ: SMTC) to Outperform from Perform after channel checks indicated improved inventory levels, better product mix, and market share gains. The firm set a $20 target on the stock.
  
• RBC Capital expects Rigel's (NASDAQ: RIGL) R788 in RA to achieve its primary endpoint in the Phase II trials. Shares were upgraded to Sector Perform from Underperform and the price target was raised to $8 from $6.
• WebMD (NASDAQ: WBMD) was upgraded to Accumulate from Sell at ThinkEquity.
  
• International Game Tech (NYSE: IGT) was raised to Conviction Buy from Neutral at Goldman.
  
• Infineon (NYSE: IFX) was lifted at Banc of America/Merrill to Buy from Neutral.

Analyst upgrades:

• Argus upgraded CBRL Group (NASDAQ: CBRL) to Buy from Hold as it believes increased efficiency at Cracker Barrel will help to boost restaurant traffic and same-store sales. The firm has a $33 target on shares.
  
• Citigroup upgraded shares of Eli Lilly (NYSE: LLY) to Buy from Hold on expectations the company's blood-thinning drug Effient is on track for a Q2 U.S. launch. The firm raised its price target on shares to $41 from $36.
  
• Needham upgraded Intel (NASDAQ: INTC) to Buy from Hold after recent channel checks suggested Intel's PC OEM orders are tracking better than expected. The firm expects Intel to keep prices and product mix stable, enabling margins to recover in Q2. Needham has an $18 target on INTC shares.
• SEI Investments (NASDAQ: SEIC) was upgraded to Outperform from Market Perform at Keefe Bruyette.
  
• Consolidated Edison (NYSE: ED) was raised at Jefferies to Buy from Hold.
  
• Taleo (NASDAQ: TLEO) was lifted to Outperform from Perform at Oppenheimer.

Public Service Enter (NYSE: PEG), a regulated gas & electric utility serving three-quarters of New Jersey's population, closed at $25.96. PEG April option implied volatility of 49 is near its 26-week average of 45, according to Track Data, suggesting slightly larger price movement.

PG & E (NYSE: PCG) serves 4.9M electricity distribution customers, and approximately 4.1M natural gas customers in California, closed at $37.52. PCG option implied volatility of 39 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Consolidated Edison (NYSE: ED) closed at $39.15. ED April option implied volatility of 32 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

TheStreet.com's Jim Cramer says that Dominion Resources saw a lot of the green movement coming and moved aggressively.

What do you do with a company that raises its dividend twice in two years by 11%, that has superior growth characteristics in its sector, enlightened management and a plan for executives to buy stock regularly?

Well, in this market, that's an easy question to answer: You sell it. That's what's been going on with Dominion Resources (NYSE: D) (Cramer's Take), the Richmond, Va.-based utility that yields more than 6%, but is bumping along its 52-week low like every other stock I follow.

5% Dividends You Can Believe In
Don't let other companies' dividend cuts turn you away from these high-yielders. The list includes Consolidated Edison, Eli Lilly, Genuine Parts, HJ Heinz, Pitney Bowes and Verizon.
http://www.smartmoney.com/Investing/Stocks/5-Percent-Dividend-Yields-You-Can-Believe-In/

The question on everybody's mind this week was when will the declines end? Was that the so much talked about capitulation? Have the stock markets bottomed?

Well, I can't answer that, and suffice it to say that many market analysts, fundamental and technical, are still quite gloomy. Pretty much all we can do in this time is hope for flat performance from a few select stocks, which perhaps would yield good returns once the economy starts rebounding and the bear market has completed its course.

Here are some picks and pans from the past week from BloggingStocks contributors:

Research in Motion (NASDAQ: RIMM) -- Steven Halpern brought a recommendation from one of The Forbes Wireless Stock Watch advisors, Nikhil Hutheesing. In Hutheesing's words: "In the long run, smart investments today will lead to profits down the road. One of those companies, that I now think looks attractive, is the Canadian maker of the BlackBerry." Not only is RIMM's corporate business strong, it is also working on getting its phones to consumers. In addition, it has lots of cash and little to no long-term debt and great prospects, what the advisor is looking for in addition to value and fundamentals in this environment.

Lear Corp. (NYSE: LEA) is an auto parts supplier. Jamie Dlugosch bets on a bailout for the auto industry here. Today, Lear has a $110 million market capitalization, down from its peak within the last 52 weeks of $2.6 billion. If the bailout finally happens, owners of LEA could benefit greatly.

"For more than 180 years, Consolidated Edison (NYSE: ED) has served the world's most dynamic and demanding marketplace: metropolitan New York," notes Dennis Slothower in his Stealth Stocks newsletter. Here, he explains why ConEd is his "stock of the month."

"Con Edison, our latest 'stockj of the month' provides electric service to about 3.2 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County.

"It also provides electric service to 300,000 customers in southeastern New York and adjacent areas of northern New Jersey and eastern Pennsylvania.

"Con Edison's competitive energy businesses participate in segments of the electricity industry that are less comprehensively regulated than our regulated businesses.

"These segments include the operation of electric generation facilities, trading of electricity and fuel, sales of electricity to wholesale and retail customers, and sales of certain energy-related goods and services.

"I can't tell you how tough it is to find and recommend a company based on my strict selection criteria. I have never seen so many stocks in my universe in steep down trends. While there are some good companies paying high dividends, their stocks are in a free fall.

"Con Edison is a strong utility company that I feel confident will continue to pay a nice fat dividend. The 10-year U.S. Treasury bond is yielding about 4%, while Con Ed's dividend is yielding 5.3%. We get a good combination in Con Ed: a high yield and possible increase in the stock price."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

General Motors (NYSE: GM) has finally come up with something to save its bacon. It will team with a number of utilities including Con Edison (NYSE: ED) and Duke Power (NYSE: DUK) to create a broad market for electric cars.

According to The Wall Street Journal, "Auto makers need the cooperation of utilities since they control the new technology's primary fuel -- electricity -- and must make sure that the vehicles' recharging processes mesh with the electricity grid and don't inadvertently undermine grid reliability." In other words, no one wants the cars to cause brown outs. GM also plans to negotiate special rates to make its electric cars cheaper to recharge.

The announcement is one of GM's first intelligent moves in a long time. It has allowed its reliance on pickup trucks and SUVs to drive down its sales and cut its market share in the US. Foreign rivals that kept lines of smaller cars now have products with broad appeal to consumers. This is particularly true of their hybrids.

GM's concern remains whether being late to the market will make it too late. Its potential customers want fuel-efficient cars now, when the price of gas is high. GM will lose billions of dollars while it tries to catch up.

The competition will not be sitting still.

Douglas A. McIntyre is an editor at 247wallst.com.

MAJOR PAPERS:

• The books of Fannie Mae -- Federal National Mortgage Association (NYSE: FNM) -- and Freddie Mac -- Federal Home Loan Mortgage Corporation (NYSE: FRE) -- are being examined by the Federal Reserve and the Office of the Comptroller of the Currency to review their financial condition, according to the Wall Street Journal.
• The Wall Street Journal also reported that the Chevy Volt, an electric car from General Motors Corporation (NYSE: GM), is slated to roll out in two years and it received a major boost from 36 utilities that operate in 40 states who agreed to work together to make the plug-in vehicle possible. Among the utilities are American Electric Power Company Inc (NYSE: AEP), Consolidated Edison Inc (NYSE: ED), Duke Energy Corporation (NYSE: DUK), and Edison International (NYSE: EIX).
• Struggling mortgage lender Paragon is reportedly in talks with The Blackstone Group LP (NYSE: BX) about a potential takeover by Blackstone, the Financial Times reported.

OTHER PAPERS:

• The New York Times reported that TiVo Inc (NASDAQ: TIVO) will today introduce a "product purchase" feature in partnership with Amazon.com Inc (NASDAQ: AMZN). Under TiVo's plan, the television remote control will be turned into a tool for buying products that are advertised and promoted on talk shows and commercials.