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
-
As part of my monitoring process, I review the list of dividend increases every week. I usually focus on companies that have managed to b...
-
I review the list of dividend increases every single week, as part of my monitoring process. This process helps me check the pulse of the di...
-
Dividend Growth Companies are businesses that have managed to increase annual dividends for several years in a row. Typically, established d...
-
I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps me to monitor existing hold...
-
Breaking down the total returns by source, helps you understand perfectly how total returns are generated Total Returns are a function of: 1...
-
I review the list of dividend increases every week as part of my review process. There were 35 dividend increases over the past week. Six of...
-
The NASDAQ US Broad Dividend Achievers Select Index is comprised of a select group of securities with at least ten consecutive years of incr...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing companies, and...
-
In my investing, look for businesses I can understand that have some sort of a competitive advantage that translates into consistent earn...
-
I am a big fan of Warren Buffett, the Oracle of Omaha. His letters to shareholders are an excellent resource for students of value investing...
