With the expectations that the financial crisis appears to be over, investors have bid up stocks to the highest levels in over a year. There’s a lot of optimism in the news, including major banks repaying TARP money, unemployment stabilizing, and major economies rebounding. If economies rebound, then consumers would be able to start spending more on everyday items, trading up from generic brands to brand name products.
The companies which could benefit from this include Johnson & Johnson (JNJ), Procter & Gamble (PG), McDonald’s (MCD), Wal-Mart (WMT) and Coca Cola (KO). They all have durable competitive advantages, which has allowed each company to become a member of the elite dividend aristocrats index after raising distributions for over a quarter of a century.
The Coca-Cola Company (KO) manufactures, distributes, and markets nonalcoholic beverage concentrates and syrups worldwide. It principally offers sparkling and still beverages. The company has increased distributions for 47 consecutive years. I would be a buyer of KO below $54.66. Check my analysis of the stock.
Wal-Mart Stores, Inc. (WMT) operates retail stores in various formats worldwide. The world’s largest retailer has a 35 year record of annual dividend raises. I would be a buyer of WMT on dips. Check my analysis of the stock.
McDonald’s Corporation (MCD), together with its subsidiaries, franchises and operates McDonald’s restaurants in the food service industry worldwide. Its restaurants offer various food items, soft drinks, and coffee and other beverages. The golden arches has raised dividends for 33 years. I would be a buyer of MCD as long as it trades below $73. Check my analysis of the stock.
Johnson & Johnson (JNJ) engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has boosted distributions to shareholders for 47 years in a row. I would be a buyer of JNJ below $65.33. Check my analysis of the stock.
The Procter & Gamble Company (PG) engages in the manufacture and sale of consumer goods worldwide. The company operates in three global business units (GBUs): Beauty, Health and Well-Being, and Household Care. The company has rewarded stockholders with dividend increases for 53 consecutive years. I would be a buyer of PG below $58.67. Check my analysis of the stock.
Even if the recovery is characterized by lower consumer participation, these stocks should benefit, particularly because their revenue streams are stable and globally diversified. A decline in the stock market would present a great opportunity to initiate or add to positions in the global powerhouses.
Full Disclosure: I have positions in every company listed above
Relevant Articles:
- Dividend Aristocrats List for 2010
- McDonald’s (MCD) Dividend Stock Analysis
- TARP is bad for dividend investors
- Six things I learned from the financial crisis
Popular Posts
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing holdings, but ...
-
I review the list of dividend increases as part of my monitoring process. This process helps me review how the companies I own are doing. It...
-
Yield on Cost is a fascinating metric. It calculates the dividend yield based on the original cost at the time of purchase. Yield on cost i...
-
My retirement strategy is focused on living off dividends. Dividends are more stable, predictable and reliable than capital gains. Dividends...
-
A famous saying goes that there are two things certain in this world: death and taxes. While I am pretty sure I can’t escape death, I know t...
-
As a shareholder, there are two ways to make profits from a stock. The first way is when you sell your stock for a gain, after it has incre...
-
I review the list of dividend increases as part of my monitoring process every week. This exercise helps me review the performance of existi...
-
A pattern of steady dividend payments and dividend increases is only possible if a business can generate enough cashflows to support operati...
-
Planning your retirement is one of the most challenging exercises in the world. There are plenty of ways, methods and advisors, who try to i...
-
The employer match is one of the best features of workplace retirement accounts such as 401 (k) plans ( Pre-tax and Roth). It’s a contributi...