20 Best Companies Stocks to Invest in 2012

It’s the thick of earnings season, and the parade of companies reporting better-than-expected numbers marches on. Along with what has been a stellar earnings season thus far, we’ve also seen a deluge of dividend divas increasing their payouts to shareholders.
This week was no exception, as a score of companies moved to make their respective owners happier. 20 companies made it onto our Companies Increasing Dividends list this week:

5 Boring Stocks, 5 Sexy Yields

Energy services holding company 20 Best Companies Stocks to Invest in 2012 -AGL Resources (NYSE:GAS) opened the valve on its quarterly payout by 2.2% to 46 cents per share. The dividend will be paid June 1 to shareholders of record as of May 18. The new dividend yield, based on the May 3 closing price of $38.55 (the day the dividend was announced), is 4.77%. The stalwart energy concern has paid dividends every quarter since 1958.
Industrial specialty gases maker Airgas (NYSE:ARG) inflated its quarterly largess to shareholders, raising its dividend 25% to 40 cents per share. The new dividend is payable June 29 to shareholders of record as of June 15. The new dividend yield, based on the May 3 closing price of $92.04, is 1.74%.
Electronic instrument maker Ametek (NYSE:AME) turned up the dial on its quarterly dividend by 50% to 6 cents per share. The new dividend is payable June 29 to shareholders of record as of June 15. The new dividend also comes with a 3-for-2 stock split. The new dividend yield, based on the May 1 closing price of $51.07, is 0.7%.
Mining giant Barrick Gold (NYSE:ABX) dug into its fiscal soil and unearthed a 33% increase in its quarterly payout to 20 cents per share. The new dividend will be paid June 15 to shareholders of record as of May 31. The new dividend yield, based on the May 2 closing price of $39.36, is 2.03%.
Energy MLP Boardwalk Pipeline Partners LP (NYSE:BWP) added to its dividend pipeline, raising its payout to unitholders nearly 1% to 53.25 cents per unit. The new distribution is payable May 17 to unitholders of record as of May 10. The new dividend yield, based on the April 30 closing price of $27.63, is 7.71%.
20 Best Companies Stocks to Invest in 2012 - Cardinal Health (NYSE:CAH) moved to improve the vitality of its quarterly payout, increasing its dividend 10.5% to 23.75 cents per share. The payout will be made on July 15 to shareholders of record as of July 1. The new dividend yield, based on the May 2 closing price of $42.42, is 2.24%. This marks the 111th consecutive quarter of dividends from Cardinal.
Natural gas firm Chesapeake Midstream Partners LP (NYSE:CHKM) turned up the heat on its quarterly distribution by 15.7% to 40.5 cents per unit. The new payout is scheduled for delivery on May 15 to unitholders of record as of May 8. The new dividend yield, based on the April 27 closing price of $27.87, is 5.81%.
Paper products manufacturer Domtar Corp (NYSE:UFS) put a new package around its dividend, increasing the payout 29% to 45 cents per share. The new dividend is payable on July 16 to shareholders of record as of June 15. The new dividend yield, based on the May 2 closing price of $88.04, is 2.04%.
Health insurance giant 20 Best Companies Stocks to Invest in 2012 -Humana Inc. (NYSE:HUM) moved to ensure shareholders that its dividend was in good shape, as the company raised its quarterly payout 4% to 26 cents per share. The new dividend is payable July 27 to shareholders of record as of June 29. The new dividend yield, based on the May 1 closing price of $84.33, is 1.23%.
Real estate and investment management firm Jones Lang LaSalle (NYSE:JLL) increased its semi-annual dividend by 33% to 20 cents per share. The new dividend is payable June 15 to shareholders of record as of May 15. The new dividend yield, based on the May 2 closing price of $85.09, is 0.47%.
Asset management giant Legg Mason (NYSE:LM) knows the value of dividends to shareholders, and this week the company moved to raise its own dividend by 37.5% to 11 cents per share. The new dividend is payable July 9 to shareholders of record as of June 12. The new dividend yield, based on the May 1 closing price of $25.32, is 1.74%.
Employment services firm ManpowerGroup (NYSE:MAN) moved to increase the salary it pays shareholders by nearly 7% to 43 cents per share. The semi-annual dividend is payable on June 15 to shareholders of record as of June 1. The new dividend yield, based on the May 3 closing price of $41.25, is 2.08%.

5 Boring Stocks, 5 Sexy Yields

Markwest Energy Partners L.P. (NYSE:MWE) raised its quarterly distribution 17.9% to 79 cents per unit. The natural gas MLP will pay the new distribution on May 15 to unitholders of record as of May 7. The new dividend yield, based on the April 30 closing price of $60.15, is 5.25%.
Regional energy operator 20 Best Companies Stocks to Invest in 2012 -Northeast Utilities (NYSE:NU) turned up the power on its quarterly payout by approximately 17% to 34.3 cents per share. The new payout will be made on June 29 to shareholders of record as of June 1. The new dividend yield, based on the May 2 closing price of $37.03, is 3.70%.
Beverage behemoth PepsiCo (NYSE:PEP) added more fizz to its quarterly dividend, pouring a 4.4% increase to 53.75 cents per share. The new dividend is payable June 29 to shareholders of record as of June 1. The new dividend yield, based on the May 2 closing price of $66.83, is 3.22%.
Cigarette manufacturer Reynolds American (NYSE:RAI) lit up a 5.4% increase in its quarterly payout to 59 cents per share. The new dividend is payable on July 2 to shareholders of record as of June 11. The new dividend yield, based on the May 3 closing price of $40.54, is 5.82%.
Commercial real estate investment trust Simon Property Group (NYSE:SPG) raised the rent it pays shareholder by 5.3% to $1.00 per share. The new payout will be delivered May 31 to shareholders of record as of May 17. The new dividend yield, based on the April 27 closing price of $155.33, is 2.58%.
Canadian oil sands firm Suncor Energy (NYSE:SU) sifted through its fiscal sand and came up with an 18.2% increase in its quarterly payout. The new dividend of 13 cents per share is payable June 25 to shareholders of record as of June 4. The new dividend yield, based on the May 1 closing price of $33.42, is 1.56%.
Rural retailer 20 Best Companies Stocks to Invest in 2012 -Tractor Supply Company (NASDAQ:TSCO) plowed a new dividend field, watering shareholders with a 67% increase in its quarterly dividend to 20 cents per share. The new payout will be harvested June 5 by shareholders of record as of May 21. The new dividend yield, based on the May 3 closing price of $98.96, is 0.81%.
Employee benefits provider20 Best Companies Stocks to Invest in 2012 - Unum Group (NYSE:UNM) moved to add a fiscal benefit to shareholders by raising its dividend 23.8% to 13 cents per share. The new dividend is expected to be paid starting in the third quarter. The new dividend yield, based on the May 1 closing price of $23.73, is 2.19%.

Hot Stocks For 2012

Hot Stocks For 2012: Alcoa(AA_)

Let's start off with a bang. With just a $14 billion market cap -- and being the leading independent producer of a metal that will be in intense demand in 2012 because of boosted aerospace, autos and power plant production -- Alcoa will be hard-pressed to stay independent. Earnings have been depressed throughout the downturn, but the cash flow has picked up, courtesy the excellent stewardship of CEO Klaus Kleinfeld. If the company stands alone its stock can advance and get a 12 multiple, a slight discount to many of the cyclical stocks in the average, and that would put it at $18. But I think it gets bought out at $22, a fabulous return and perhaps my favorite in the whole average.

Hot Stocks For 2012: Bank of America(BAC_)

The bank will settle the mortgage putback claims, put a lot of its bad mortgage loans behind it and have an assertive Merrill Lynch to boost its earnings. I think that this company, which trades basically at its cash value, will have a terrific year, especially because CEO Brian Moynihan should be growing into his role and become more of a spokesperson that can help this riddled brand. The integration of the three companies, original Bank of America - itself a pastiche of many banks including Nations and Fleet, where Moynihan's from -- Countrywide and Merrill Lynch will finally be consummated in 2012. Glorious. Don't forget that despite all of the turmoil, Bank of America now has an unheard-of 20%-plus market share in the nation's mortgage market, and I think that market will come alive as the housing shortage of 2012, another of my predictions, comes about. I see this stock trading at $18, where it stood not that long ago, a terrific gain.

Hot Stocks For 2012: MEMC Electronic Materials(WFR)

MEMC Electronic Materials(WFR) makes polysilicon and wafers for the solar energy and semiconductor industries.
Barclays believes that it will gain market share in the semi space in 2012 and its movement to bring wafering in-house will accelerate vertical integration in the solar business and boost margins going forward. With declining average-selling-prices and costs for wafers in 2012, earnings remain variable.
Still, the stock trades at nine-times Barclays' 2012 earnings forecast, a significant historical discount. In years past, its trading range has been 12 to 27 times Barclays' EPS estimate, so major upside is possible.

Hot Stocks For 2012: TCF Financial(TCB)

TCF Financial(TCB) is a Midwest bank with retail and wholesale banking businesses.
Barclays notes that its seven-day branch operations and outstanding deposit base afford it a "best-in-class net interest margin." It has a strong leasing and equipment finance lease division, which will grow lending in 2012. Regulatory hurdles, including lower service fees stemming from the Dodd-Frank Act, present a potential headwind, which could damage its debit card fees anywhere from 20% to 80%.
Still, TCF is an exceptionally well-run bank, with 62 quarters of consecutive profitability and higher-than-average capital ratios. Barclays projects a $22 share price, suggesting 51% of upside in 12 months.

Hot Stocks For 2012: JPMorgan Chase(JPM)

The dividend's going to be boosted, the buyback enlarged, the earnings power revealed, the shroud gone. JPM's still the best-run bank in America, if not the world and CEO Jamie Dimon is one of our greatest bankers. The company really did come through this period relatively unscathed and with a better branch network, courtesy the dirt cheap price of Washington Mutual. This company's stock has done nothing, literally nothing, year over year. Unchanged! That won't be the case in 2012. I see it going to $50 propelled by earnings power and the dividend hikes. It will be the preeminent financial to own and become a staple of many a mutual fund's portfolio. Call it $50.

Hot Stocks For 2012: 3M(MMM)

The disappointing analyst meeting and the negative previous quarter haunt this stock going into 2012. But if you are like me and believe there will be worldwide growth, you would be nuts not to consider buying this 13% grower for just 15 times earnings. 3M's got so much going for it in Asia and has so many new businesses--it remains the most potent inventor of new products among the major companies I follow--that I think it will drift back up to its 52 week high of $91 if not higher. Perhaps $100, which I think is my stretch goal given its $6.16 in composite EPS estimates. Why $100? I think the dollar gets weaker and this is one of the most sensitive companies to the greenback which means that $6.16 could be too low. Cheap stock that's in the penalty box because of the ever so slight shade down of earnings, a shade down that, when I analyze the company, is something that will be left behind in 2012.

Hot Stocks For 2012: Vale(VALE)

Vale(VALE) is a metals and mining company and a producer of iron ore and iron ore pellets.
Barclays views the stock as the "best vehicle in Latin America to gain exposure to a potential five-year iron ore super cycle." A favorable iron-ore pricing environment will boost the stock, which is expected as Chinese consumption continues to grow.
Vale is a lowest-cost producer, so growth translates favorably to the bottom-line tally. Further, Barclays believes that Vale offers superior product quality, with a high iron to low gangue proportion, and has outstanding "long-reserve-life assets."
It views the consensus price scenario for iron as too bearish and the supply scenario as too optimistic.

Hot Stocks For 2012: Invesco(IVZ)

Invesco(IVZ) is an asset-management company, which Barclays believes is best positioned to profit from a transition out of fixed-income vehicles and into riskier asset classes in 2012, as Invesco's asset base is nearly 50% in equities or equity-related assets.
Barclays sees the operating margin rising from the mid-thirty-percent range to just beneath 40% if it can leverage its retail products into the institutional space and expand its asset base. Barclays' target suggests a potential 35% return in the next 12 months.
Other researchers are also bullish. Of those covering the stock, 65%, comprising Goldman Sachs, Credit Suisse and JPMorgan advise purchasing Invesco
More about the best and top stocks in Best Investment Site

2012 Best Investment Tips

Don't worry; it's nothing dangerous. In fact, if you're an income investor, this might be the start of a very prosperous trend.
In 2011 the first of 75 million Baby Boomers will hit 65 -- retirement years. You might be among them. This marks a major shift for millions of people that will play out over the next years and decades. And I think that it could mean soaring popularity for income investing.
In fact, my colleague Amy Calistri outlined the case in a recent Dividend Opportunities article:

"Think about it. Some estimates have this group [Baby Boomers] controlling over 80% of personal financial assets -- that's trillions of dollars. Much of that is tied up in housing and other non-liquid investments, but there are still loads of cash in traditional spots. According to the Investment Company Institute, there is $10.7 trillion in mutual funds alone. As Baby Boomers wind down their working years, they're going to do what retirees before them have done -- shift from riskier stocks and commodities into more buttoned-down income investments. In fact, given the rocky market over the past decade and disappearing pensions, the shift could be larger than most people think."

This could lead to a golden age for income investing. But as attractive an opportunity this may be, there is no guarantee the graying of the Baby Boomers will simply lead to a massive bull market across all income securities. That's why it's still most important to select high-quality ideas. If you do this, then any broad bull market will simply be icing on the cake.

So to help you find the best high-yield plays -- and maximize your returns -- I've rounded up some of my favorite income investing tips. I use these tips personally to help guide my portfolio choices in High-Yield Investing, so no matter your experience level, they should give you an edge in finding the best income investments on the market. And if we see the big shift into income securities in the years and decades ahead, all the better.
2012 Best Investment Tip #1 - Look off the beaten path: Always remember that yield is a combination of dividends paid and share price. If prices rise, the yield on a security falls, all else being equal.
So what will happen to many of the most popular high-yield spots if millions more are looking for solid income? Their prices would likely rise, pushing yields down.
That's why I think it's valuable to look off the beaten path for higher yields. You have to look into the special classes of securities built for income investors. My years of researching the income field have uncovered even the most rare of these assets, including securities like business development companies, stapled products, master limited partnerships, and even exchange-traded bonds. This is where you'll uncover truly mouth-watering yields overlooked by the majority of investors who are focused on common stocks.
2012 Best Investment Tip #2 - Dividend safety is key: For us income investors, nothing should be held in higher esteem than the safety of our dividends. After all, what's the use of a high dividend if it's only going to be cut a few weeks later?
But an amazing thing happens when you follow my first tip and look off the beaten path for income investments.
Common stocks are under no obligation to pay a dividend; they can cut their payments at any time if they please. But I've found a few securities -- such as preferred stocks -- that can't change or reduce their payments. A number of other little-known securities have the same restrictions, all but guaranteeing you'll be paid a stream of income you can count on.
2012 Best Investment Tip #3 - Use market downturns to find higher yields: Most investors look at a market downturn as a bad thing, and in fact, I would rather the market rise than fall. But I also appreciate the opportunities that appear in a downturn.
As I said, a stock's yield is a function of its price. If a stock pays $1 per share and trades at $20, its yield is 5%. If the same stock dips to $10 per share, the yield has risen to 10%.
That's one reason why I bought heavily during the recent market downturn -- the yields became too high to ignore! If you can stomach volatility during a bear market, you'll likely have a chance to lock in unnaturally high yields.
2012 Best Investment Tip #4 - Don't be afraid to take a loss: High-Yield Investing subscribers always ask me when to sell their holdings. And for good reason -- when you sell is just as important as when you buy.
I'm personally never afraid to take a loss. Many investors continue holding losing stocks and hope for a rebound, only to watch them sink further. I've seen this countless times, so I'm always sure to look at the reasons a holding is falling and if I should sell.
If the stock in general is falling with the market, I may not be worried. However, if a change in the company's operations mean it could see rocky times ahead, I don't want a part of it.
2012 Best Investment Tip #5 - Taxes matter: When is a lower yield more attractive than a higher yield that's just as safe? When the lower yield is taxed at a lower rate.
Consider this: An investor in the top federal tax bracket is invested in a municipal bond that pays 6%. Because the income from this bond is tax-free, the taxable-equivalent yield is actually 9.2%! In other words, if the same investment were in a fully taxable security, our investor would have to earn 9.2% to have the same income after taxes.
It doesn't take long for that difference to add up to serious cash.