Top 10 Stock Pics - Dividend Reinvestment Plan Stocks |
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Sherwin Williams Company (The) (SHW)Sherwin-Williams (SHW): This is the largest producer of paints and varnishes in North America, whose brand names include Sherwin-Williams, Dutch Boy, Krylon, Pratt & Lambert, Martin Senour, Kem-Tone, and Thompson-Minwax. It operates 3,346 of its own stores, selling a complete line of paint products, wallpaper, floor coverings, and window treatments, along with assorted related tools. It also owns and operates auto-painting shops. Officers, directors, and employees own 16.7% of the 113 million shares outstanding. The dividend has been increased annually since 1979. (No fees) |
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Praxair, Inc. (PX)Spun off by Union Carbide in 1988, Praxair is the world’s second largest producer of industrial gases. It produces atmospheric and process gases, as well as high-performance surface coatings, which it sells to the aerospace, chemicals, food/beverage, electronics, energy, healthcare, manufacturing, metals, and other industries. The dividend has risen 6-fold just since 1998, and has been raised each year since 1992. PX has achieved a 10-year earnings growth rate of 11% and 10-year dividend growth rate of 17.5%. Annual sales exceeded $10 billion for the first time in 2008, when Praxair earned $4.20 per share, up from $3.62 in 2007. It’s expected to earn about $4.01 per share this year and $4.50 in 2010, fueled by ongoing expansion overseas, especially in Asia. |
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3M Company (MMM)3M Company (MMM): This is a highly diversified manufacturer of products for home, industry, and offices, and 65% of annual revenue from foreign sales. It can boast an annual dividend increase every year since 1959, with payouts since 1916. The present annual dividend of $2.04 is more than double what was paid in 1996. 3M has cash of $1.88 billion, compared with total debt of $6 billion. The 10-year average return on capital was 25%, while sales have increased by 6.5%. One fund owns 7.6% of the 694.4 million outstanding shares. In 1991, there were 876.56 million. 3M intends to repurchase $2.6 billion worth of its shares. |
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Johnson & Johnson (JNJ)Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has more than 250 operating companies. The Company operates in three segments. The Consumer segment includes a range of products used in the baby care, skin care, oral care, wound care and women’s healthcare fields, as well as nutritional and over-the-counter pharmaceutical products. The Pharmaceutical segment includes products in the therapeutic areas, such as anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology. The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers. |
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Hormel Foods Corp. (HRL)Hormel Foods (HRL): This well-managed company operates 29 food-processing plants. Its brand names include Hormel, Spam, Dinty Moore, Top Shelf, Little Sizzler, Chi-Chi Salsa, Kid's Kitchen, and Mary Kitchen. Dividends have been increased each year since 1965 and paid since 1928. The Hormel Foundation owns 48% and officers and directors own 3% of the 134 million outstanding shares. A strong balance sheet, conservative business practices, coupled with a change to more of a consumer goods company (and less a commodities business) should make HRL much more profitable. Total debt is $410 million, just 14% of capitalization, compared with $295 million in cash and more than $400 million in annual cash flow. (No fees) |
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FPL Group, Inc. (FPL)FPL Group is the parent of Florida Power & Light, a utility that engages in the generation, transmission, and distribution of electricity to 4.5 million customers in a 27,650 square mile area of eastern and southern Florida. Its NextEra Energy Resources subsidiary is a non-regulated power generator that produces electricity from nuclear, natural gas, solar, and wind generation. It owns 48 wind farms in 15 states producing 4,100 megawatts and could double that output within the next four years. The company is expected to earn about $4.15 per share this year and $4.57 in 2010, compared with $3.84 in 2008. The dividend has been increased for 15 consecutive years and the annual payout now stands at $1.90 per share, for a yield of about 3.4%. |
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Bank of New York Mellon Corp. (BK)The Bank of New York Mellon is a global financial services company whose divisions include Asset Management, Wealth Management, Asset Servicing, Issuer Services, Clearing and Execution, and Treasury Services. Having traded its physical bank branches for asset management operations of J.P. Morgan and subsequently merged with Mellon Financial, the company that was founded in 1784 is no longer a traditional bank, despite its name. In addition to being the largest sponsor of ADRs (American Depository Receipts) and Direct Investment Plans, BK is a major provider of ETFs (Exchange Traded Funds) and the prime custodian of the government’s Troubled Asset Relief Program (TARP) funds and operates in 27 countries. Consensus estimates call for it to earn about $2.16 per share this year and $2.62 in 2010, compared with $2.39 in 2008. |
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Ecolab Inc. (ECL)Ecolab develops and markets chemicals and services for cleaning, sanitizing, and maintaining equipment used by the hospitality, foodservice, healthcare, and industrial markets, as well as chemicals, lubricants, and animal health products. It also provides floor care products and electronic dispensers, as well as complete ‘clean-in-place’ process control and facility cleaning systems. International sales account for nearly half of its $6 billion in annual revenues. Consensus estimates call for Ecolab to earn about $1.97 per share this year and $2.24 per share in 2010, compared with $1.86 in 2008. The annual dividend has been increased for 17 consecutive years and is now 56¢ per share, up from 21¢ in 1999. |
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Becton Dickinson & Co. (BDX)Becton Dickinson & Co. (BDX): This is a major manufacturer of medical and hospital supplies, whose products include hypodermic needles and syringes, catheters, surgical gloves, surgical instruments, and many intravenous and cardiovascular items. It has paid a dividend since 1926 and raised those payouts annually since 1973. The dividend rose from 34¢ per share in 1999 to the present $1.48, while earnings rose from $1.46 to an expected $4.95 per share this year. For 2010, BDX is expected to net about $5.25 per share. Officers and directors own 1.3% and two funds own 11.4% of the 239 million outstanding shares. |
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Emerson Electric Co. (EMR)EMR manufactures a broad range of electrical products and equipment. It spent about 1.8% of 2008's $24.8 billion sales on research and development, while net profit margins have been averaging around 8.5% since 2000. Overseas sales account for 54% of revenues. Dividends have been raised for 52 consecutive years. Earnings should grow to well over $3 per share by 2013-4, which translates into share prices in the $55 range. (No fees) |
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