Dividends4Life: Expert Picks for 2010

Expert Picks for 2010

Posted by D4L | Thursday, December 24, 2009 | | 0 comments »

'Tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind the picks. As a long-term buy and hold investor, generally most aren't useful for me; nevertheless, I find them entertaining and sometimes there is a gem to be found.

Andrea Tse, in an article from TheStreet.com believes consumer-goods stocks are poised to grow next year as the economy lifts and consumer spending rebounds. Here are her 6 picks for 2010:

  • Scotts Miracle-Gro (SMG) - A leading international supplier of products for the lawn and garden market.
  • Clorox (CLX) - A manufacturer and marketer of consumer products including Clorox bleach, Armor All, STP, Kingsford, Hidden Valley, etc. CLX is a Dividend Aristocrat that has increased its dividend for the last 32 consecutive years.
  • Procter & Gamble (PG) - A leading consumer products company that markets its household and personal care products in more than 180 countries. PG is a Dividend Aristocrat that has increased its dividend for the last 53 consecutive years. [Analysis]
  • Philip Morris International (PMI) - An international tobacco company.
  • Johnson & Johnson (JNJ) - A leader in the pharmaceutical, medical device and consumer products industries. JNJ is a Dividend Aristocrat that has increased its dividend for the last 47 consecutive years. [Analysis]
  • PepsiCo (PEP) - a major international producer of branded beverage and snack food products. PEP is a Dividend Aristocrat that has increased its dividend for the last 37 consecutive years. [Analysis]
Fortune says it's unlikely that equities will enjoy a repeat of the mass revival of 2009. But, they believe these 10 companies should prosper even if the markets don't:
  • MasterCard (MA) - A global leader in credit card transaction processing and brand licensing providing services in over 210 countries and territories.
  • Amedisys (AMED) - A provider of home health care and hospice services in the eastern, southern and southeastern U.S.
  • Qualcomm (QCOM) - Focuses on developing products and services based on its advanced wireless broadband technology.
  • Petrohawk Energy (HK) - Independent oil and gas company that is engaged in the acquisition, production, exploration, and development of oil and gas properties.
  • Baxter International (BAX) - Global medical products and services company provides critical therapies for people with life-threatening conditions.
  • Quanta (PWR) - Provides specialized contracting services, offering end-to-end network solutions to the electric power, gas, telecommunications and cable television industries.
  • Salesforce.com (CRM) - A leading provider of on-demand customer relationship management applications.
  • American Tower (AMT) - Operates the largest independent portfolio of wireless communications and broadcast towers in North America.
  • Renhe (RNHEF) - Develops air-raid shelters in China.
  • Vornado (VNO) - REIT that owns a diverse group of properties, including Northeast retail properties, New York City office buildings, and other interests. VNO is a Dividend Achiever that has increased its dividend for the last 37 consecutive years.
James Altucher in an article on Daily Finance presented his 10 favorites for 2010:
  • Assured Guaranty (AGO) - Provides financial guaranty insurance and reinsurance, as well as mortgage guaranty coverage.
  • Wellcare Health Plans (WCG) - Provides managed care services targeted exclusively to government-sponsored health care programs.
  • Potash (POT) - One of the world's largest diversified fertilizer companies and the world's largest potash producer.
  • Cash America (CSH) - Owns and operates pawnshops in the United States.
  • Becton Dickison (BDX) - Provides a wide range of medical devices and diagnostic products used in hospitals, doctors' offices, research labs and other settings. BDX is a Dividend Aristocrat that has increased its dividend for the last 37 consecutive years. [Analysis]
  • Hillenbrand (HI) - Hillenbrand is the largest supplier of products to the funeral service industry.
  • Telecom Corp. of New Zealand (NZT) - Provides telecommunications and information technology products and services to residential and business customers in New Zealand and Australia.
  • STEC (STEC) - Designs, makes and markets custom and open-standard memory solutions based on Flash memory and dynamic random access memory DRAM technologies.
  • Alvarion (ALVR) - Sells wireless broadband connectivity infrastructure products that allow telecom carriers and service providers to deliver high-speed data and voice services.
  • GlaxoSmithKline (GSK) - International pharmaceutical company formed in December 2000 through the merger of British drugmakers GlaxoWellcome and SmithKline Beecham.
As a long-term, buy-and-hold income investor, many of the stocks in the above lists don't meet my criteria for a buy. Dividend investors are looking for stocks that will perform well over the long run, not just 2010. As such, I prefer to start with this list of stocks.

Full Disclosure: Long CLX, JNJ, PEP, PG. See a list of all my income holdings here.

(Photo Daniela Baack)

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