a better product mix, innovative drug research, and profitable patents. Abbott’s historical, seemingly sustainable dividend translates to an annual dividend yield of 3.24%. Other pluses, she says, include that the patented Humira faces no generic competition for at least four years. The heart stent, Xience, is ranked high in use. Abbott nutritional offerings are in demand, as are its diagnostics, devices, and generic drug products. Full disclosure: Braxton has a long position in Abbott.
STOCK PRICE: $63.06Â -Â P/E: 19.51
JOHNSON CONTROLS INC. (JCI) As the U.S. leader in automotive interiors and batteries and a global player in controls systems manufacturing, $40.8 billion Johnson Controls of Milwaukee is a large-cap company with a great dividend yield of 2.19%. Responding to global economic weakness and rising material and energy prices, Johnson Controls has reduced restructuring costs and positioned its automotive manufacturing supply chain and building infrastructure divisions to expand in Japan and China, Braxton says. At home, Johnson Controls stockholders may benefit from the demand for greater energy and operational efficiencies in commercial buildings. In addition, the company’s dividend yield diversified revenue stream may increase, says Braxton.
STOCK PRICE: $32.85Â -Â P/E: 13.56
STEVEN MADDEN LTD. (SHOO) This small-cap company is a leader in the footwear space under its namesake brand and private labels. Steve Madden attracts consumers with its creative designs at affordable price points. Trendy, quality-conscious consumers can find its merchandise everywhere from department and specialty stores and luxury retailers to company-operated retail and online stores. Trademark licenses include Steve Madden, Steven by Steve Madden, Betsey Johnson, and Betseyville for retail items such as apparel, accessories, outerwear, and jewelry. It projects 2012 net sales will increase 21% to 23% compared with sales in 2011, meeting analyst expectations. Since 2009, the company has experienced steady sales growth. But Braxton says with a family-owned company there is “a risk if family dynamics and perks place a drag on the company’s financials. Steve Madden’s market growth in the midst of an economic downturn is worth noting, however. The company secured consumer confidence even when everything else suggested decline.†Full disclosure: Braxton has a long position in Steven Madden.
STOCK PRICE: $43.09Â -Â P/E: 19.16