"One way to build an inflation hedge into your investment cash flows is to focus on stocks that are likely to boost their dividends on a regular basis," explains dividend specialist Chuck Carlson.

In his The DRIP Investor, which focuses on blue chip companies offering dividend reinvestment programs, he notes, "Since dividends are paid with cold cash, they can't be faked. Either you pay the dividend or you don't. They can't be some figment of accounting magic." Here, he looks at three favorite blue chips with strong dividend records.

"I'm often drawn to companies that fly 'under the radar' or are misunderstood by investors, such as Del Monte Foods (NYSE: DLM)," says Chuck Carlson in his The DRIP Investor.

"Most people recognize the Del Monte name and the company's brands in the fruit and vegetable business. But did you know that Del Monte is also home to some of the most popular pet-food brands in the marketplace?

"Profits have been solid in recent quarters, and growth should continue in 2010. An improving ?nancial position and a rising dividend round out the appeal.

"Regardless of how you analyze the company, CVS Caremark (NYSE: CVS) stands out," says Chuck Carlson.

In The DRIP Investor, he explains, "Our Quadrix stock-rating system ranks more than 4,000 stocks based on more than 100 different variables. CVS scores better than 90% of the stocks in the Quadrix universe."

"CVS's Sector score -- that is, a score devised by evaluating the metrics that have the most influence over performance in that particular sector -- is also impressive at 95 out of a possible 100.

"Inflationary fears and the desire to generate higher returns in non-dollar assets should boost BRIC stocks (Brazil, Russia, India and China)," says Chuck Carlson in his The DRIP Investor.

"Despite the run-up this year, BRIC stock markets are still reasonably valued. Russia, India, and Brazil all trade at price/earnings ratios similar to the U.S.

"And while China's stock market does trade at a premium to the U.S., China's economic growth will swamp that of the U.S. this year and for the foreseeable future.

"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

In a review of the pharmaceutical sector, Chuck Carlson selects his favorite International stocks which also offer direct-purchase plans for U.S. investors.

Here's a look at two of these stocks -- United Kingdom-based AstraZeneca (NYSE: AZN) and Denmark-based Novo Nordisk (NYSE: NVO) -- from his The DRIP Investor, a newsletter focused on long-term, high quality investments.

"AstraZeneca is a leading pharmaceutical firm. The company boasts a portfolio that includes 11 products that generate more than $1 billion each in annual sales.

"Health-care stocks have been volatile of late, as the prospects for significant healthcare reform are impacting the group," notes Chuck Carlson.

In The DRIP Investor, he explains, "Johnson & Johnson (NYSE: JNJ) has not been immune to the weakness. And while these shares could remain under pressure in the short run, the company's prospects are significantly brighter than the typical health-care stock."

"First, Johnson & Johnson's diversified business portfolio, which includes pharmaceuticals, medical technology, and consumer products, should help to smooth out results and cushion declines in any one area.

"I've always liked Staples (NASDAQ: SPLS); the company has traditionally put up good numbers, and the stock price has been rewarding for investors over the years," says Chuck Carlson, noting, "Staples is the world's largest office products company. With $27 billion in sales, Staples serves customers in 27 countries."

The editor of the blue chip advisory, The DRIP Investor, adds, "The stock has gotten hammered by a variety of issues." Here's his review. It is down 40% from its 52-week high

"Yes, the environment for retailers is lousy. Yes, it's tough to see any near-term improvement. And, yes, debt is evil right now. But the stock is already discounting to a large degree those negatives. The stock's current price level is attractive enough to warrant some nibbling.

"What can get this market going again?" asks Chuck Carlson. In The DRIP Investor he says, "It's helpful to understand what stocks within the Dow need to do well for the index to do well."

"Not surprisingly, IBM (NYSE: IBM), the highest-priced stock in the Dow, carries the greatest weighting at more than 9% of the index. Obviously, with such a heavy weighting in the index, IBM will need to be a decent performer for the Dow to do well going forward.

"And when you total up the exposure of IBM with the other tech stocks in the Dow - Microsoft (NASDAQ: MSFT), Intel (NASDAQ: INTC), and Hewlett-Packard (NYSE: HPQ) - the total tech weighting in the Dow is 16%. Thus, tech stocks matter to the Dow, so it is diffcult to see the Dow sustaining a move upward without a nice rebound in the tech sector.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"My selection for 2009 is Bristol-Myers Squibb (NYSE: BMY)," says Chuck Carlson, the leading advisor in the area of dividend reinvestment plans.

In his The DRIP Investor, he explains, "This pharmaceutical company has a lot to offer investors, including a high yield, a rising profit stream, and a speculative kicker in the way of takeover appeal." Here's his review.

"Bristol-Myers Squibb has a number of popular brands, including Plavix, the company's leading cardiovascular product; HIV treatments Reyataz and Sustiva; and oncology product Erbitux. Its stable of products has helped drive decent sales growth.

"Bristol-Myers Squibb has done a nice job of ?rming up its balance sheet. The company's cash coffers were boosted by the sale of its ConvaTec medical-device and wound-care business for $4.1 billion.

"At the end of the third quarter, the ?rm had more than $7 billion in cash and securities, a 'signi?cant majority' of which was invested in Treasury Bills and Treasury-backed securities.

"Qualcomm (NASDAQ: QCOM) is my favorite stock for gains over the next 12 months," says Chuck Carlson. Here's his bullish assessment from The DRIP Investor newsletter.

"Yes, the market is declining. And, yes, it is often scary to buy during such market periods. Nevertheless, there's an adage that 'the best time to invest was yesterday; the next best time is today'.

"Indeed, countless studies have shown that the best thing any investor can do is invest early and often. That is the best way to maximize the power of time, and time will have the greatest bearing on your investment results.

"Thus, investors need to be willing to buy even when it is difficult to do so, or should I so especially when it is difficult to do so. The reason is that we usually are reluctant to buy stocks during market declines. Yet, if you think about it, declining markets should be precisely the time we buy since stocks are cheaper.

"The stock has demonstrated impressive price performance throughout the market volatility in recent months, rising to its highest level in a year above $50 before pulling back.

"Companies dependent on consumer spending have been under a cloud on Wall Street," cautions Chuck Carlson, the industry's leading expert on dividend reinvestment plans.

"However, Disney (NYSE: DIS) is one of those consumer-dependent stocks where conventional wisdom may not be correct," he adds in his The DRIP Investor.

"With $4-per-gallon gasoline, one would think that the high cost of travel would take some steam out of the firm's theme park attendance. However, recent results on this front were decent, and the firm's other businesses have held up, too.

"To be sure, a prolonged recession would impact business. Still, Disney has done a nice job of positioning its theme parks as an affordable vacation for families, and that should help it continue to weather
economic weakness.

"Disney surprised Wall Street with the resiliency of its theme-park and resort business in the fiscal second quarter. Revenue for the unit jumped 11% in the quarter. Results were aided by a boost in international visitors taking advantage of the weak dollar.

"Socially Responsible Investing (SRI) is no longer relegated to a tiny corner of the investment landscape; indeed, according to the Social Investment Forum, SRI now accounts for $2.7 trillion, up more than 18% since 2005," says Chuck Carlson.

Here, the editor of The DRIP Investor offers five stock that both rank high for their social responsibility and also stand out based on more traditional earnings and valuation analysis.

"The Social Investment Forum estimates that more than one in every 10 dollars under professional management in the U.S. is involved in SRI investing. What is driving the growth in SRI?

"One factor is the increasing numbers of women and younger investors among the investor populace have fueled demand for SRI investments.

"In addition, we see an increased focus on environment, social, and corporate governance issues. Further, widely publicized stories concerning global warming as well as various corporate governance issues, have caused many investors to reconsider how they deploy their investment capital.

"I've never been a big fan of deep cyclical industries, such as autos, chemicals, and steel; the companies tend to have violent swings in their results as a result of economic cycles," observes Chuck Carlson.

However, says the editor of The DRIP Investor, "Every so often I'm willing to make an exception for a well-run cyclical company. Arcelor Mittal (NYSE: MT) is such a company." Here is his review.

"Arcelor Mittal is the world's number one steel company, with 310,000 employees in more than 60 countries. It has demonstrated the ability to navigate the often-difficult waters of the steel industry.

"For investors who are looking for stocks that should hold up in an inflationary environment, Mittal should be of interest. The company has pricing power -- for example, the company just announced a $100-per-ton price increase on its carbon and high-strength low-alloy plate steel products for all North American orders, effective May 4.

"The stock that I think may put up the best performance in 2008 is Bristol-Myers Squibb (NYSE: BMY)," says Chuck Carlson, the industry's leading authority on dividend reinvestment plans and editor of The DRIP Investor.

Here, the advisor looks at the stock's role in the defensive pharmaceutical sector, its increasing dividend yield, and its takeover potential.

"I know this may strike some of you as an odd choice, especially given the fairly mediocre performance these shares have turned in over the last several years. However, some of the uncertainty hanging over these shares has been lifted.

"The firm has won its patent suit with Apotex over its important Plavix medication. Also, Bristol-Myers has finalized a civil settlement agreement with the U.S. Department of Justice.

"I like that the firm is cutting costs as well restructuring its operations. The company plans to reduce total headcount by approximately 10% by the end of 2010. Bristol-Myers recently announced the sale of its medical-imaging business.

"And Wall Street anticipates additional asset sales, possibly the company's woundcare supplies company, ConvaTec, and its Mead Johnson nutritional business. These moves would be consistent with the company's plan to become more of a player in the BioPharma sector.

"Two additional reasons Bristol- Myers may get some play in 2008 is that 1) health-care stocks traditionally perform well during rocky market periods; and 2) high dividend yielders usually provide a buffer during tough markets.