The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow Removal"During times such as these, I like to focus on big companies with clean balance sheets that pay decent dividends," says Glenn Rogers.
Here, the contributing editor to Internet Wealth Builder reviews his current stock holdings for a trio of global favorites offering upside potential while still allowing investors to "sleep well at night."
"Diageo Plc (NYSE: DEO) is well down from my original recommended price but compared to the overall market they have performed respectably.
"Meanwhile, the company recently issued a statement confirming its previous guidance of profit growth of between 7% and 9% in 2008.
"The company reported that organic net sales grew 6% in the three months to Sept. 30 and that there has been no material change in the financial position of the group during the period. Buy, with a target of $90.
"I have owned Knightsbridge Tankers (NASDAQ: VLCCF) longer than any other in my portfolio and it has never failed to pay a hefty dividend. The stock is currently trading at $17.40, thus yielding an incredible 17.2% based on a quarterly dividend of 75c a share.
"Normally high yielders like this give me pause but this Bermuda-based shipping firm has performed so well for so long that even with a world recession looming I think the current share price is a bargain.
In late August, the company announced second-quarter results with net income coming in at $14.2 million (83c a share). For the first six months of the year, the company reported net income of $29 ($1.70 per share).
"I continue to like the shippers even though they have been savaged lately. Even if the payouts are temporarily reduced they will still offer good cash flow and you will get capital appreciation along the way. Back up the truck!
"Veolia Environmental Services (NYSE: VE) has been hammered along with everything else and are down 57% from my original recommended price.
"In normal times, you'd think that was a clear indication that something is terribly wrong with the company. It's not. This is just one more example of a good stock been beaten down because investors are selling anything at any price.
"This stock should be very defensive since the company is in the waste, water, energy, and transportation business.
"The company pays an annual dividend in May of each year which is based on the previous year's earnings. In 2008, the dividend was €1.21 per share (about US$1.65).
"The company said in September it expects to increase the dividend by 10% next year but even if it only maintains this year's rate the yield on the stock at the current price will be 5.2%, The trailing PE ratio is 11.56. This looks like a great buy to me."
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.
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