Investing in troubled times

Stocks are in a rut, just muddling along. Dow cracked thru 8K a few weeks ago but can't make any head way. The S&P 500 broke into the black for 2009 last week, then slipped back to down 20 YTD. Even the Alerian MLP Index which has been the strongest performer this year, backed off from 218 to levels reached about 4 weeks ago.


Dow Jones Industrials --- YTD




S&P 500 ---- YTD




Alerian MLP Index ---- YTD





For those looking for investment ideas, the S&P 500 Dividend Aristocrat list remains an excellent source of prospects. This list includes members in the S&P 500 which have a track record of continuous dividend increases for a minimum of 25 years. However, the group has gone thru a brutal time in the last couple of years. All banks are (or will be taken) off the list. Giants like General Electric (GE), Pfizer (PFE) & Masco (MAS) with it's 50 year track record have cut dividends in 2009 which will take them off the list.

But many remain strong & are doing reasonably well, showing the value of a long track record paying higher dividends. A few which have already announced an increase in the quarterly dividend in 2009 are:

3M (MMM)
Coca Cola (KO)
Eli Lilly (LLY)
Exxon Mobil (XOM
Kimberley Clark (KMB)
McDonalds (MCD)
Pepsico (PEP)
Procter & Gamble (PG)
Wal-Mart (WMT)

One word of caution, lists on the web of the Dividend Aristocrats may be a year or 2 old. Any stock on a list should be checked to verify if it still qualifies to remain in the group at year's end. Carefully selecting good companies paying higher dividends year over year should make for very smart investing.