Thursday July 02, 2009
"DuPont EI de Neumours (NYSE: DD) is a world-class company with a world-class dividend yield," says growth & income expert Bryan Perry. Here's the latest from The Cash Machine.
"Some of the biggest winners in a recovering economy are those stocks of companies engaged in the basic businesses such as industrial chemicals, plastics, and adhesives.
"The firm can implement price increases along the way, which could translate into phenomenal earnings surprises and set a stock like DuPont in motion higher.
"Since 1802, DuPont's business has been focused on science-based products and services by using science to create sustainable solutions essential to a better, safer, healthier life for people everywhere.
"Currently, the company has operations in more than 70 countries, and offers a wide range of innovative products and services that include agriculture. It stays ahead of their competition by investing in research.
"With greater emphasis on the execution of its product development efforts, DuPont delivered more than $10 billion in sales from new products that are less than five years old in 2008.
"And in the first quarter of 2009, DuPont commercialized more than 500 new products to the market, nearly double compared to first quarter 2008.
"The shares are sporting a dividend yield of 5.70%, one of the highest yields for any blue chip stock traded today. 2010 sales are estimated to rise by 6.5%, and earnings are forecast to advance by 12% -- not bad for a company doing $26 billion in sales.
"In the latest quarter, the company earned 54 cents per share, beating Wall Street estimates by two cents, and maintained forward guidance for the second quarter.
"Overall, DuPont is a world-class company with a world-class dividend yield poised to benefit from the eventual upward pressures of inflation. From and fundamental and technical standpoint, DuPont looks good to go. The stock deserves to be on our Conservative High-Yield Buy List."
