Dividend.com: Tiffany Has Gift for Investors

Tiffany & Co. Shines Again on Rising Sales Numbers, Raises Profit Outlook

Famous jewelry maker Tiffany & Co.(TIF Quote - Cramer on TIF - Stock Picks) reported another double-digit sales increase for this past quarter, as revenue rose 11% to $732.4 million.

A big highlight for the company was in its overseas sales, such as the Asia-Pacific region, which saw an increase of 17% to $214.2 million. Sales in Europe in the second quarter increased 35% to $71.0 million.

The company raised its full-year profit outlook by 2 cents a share to a range of $2.82 to $2.92. Total sales are expected to rise 9%, led by Europe and Asia with a return to positive comparable-store sales in the U.S. expected in the fourth quarter.

We are adding shares of Tiffany & Co. to our "Recommended" list after this glowing report. The company is trading at relatively low 15 times earnings, and has a decent dividend yield of 1.51% (based on last night's closing stock price of $39.61).

Tiffany's is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.5 out of 5 stars.

Williams Sonoma Revenue Slips, Guidance Cloudy

High-end kitchenware maker Williams Sonoma (WSM Quote - Cramer on WSM - Stock Picks) has just reported a lackluster quarter of earnings. The company reported revenues that fell 5% to $819.6 million. During the second quarter, same-store sales fell 11.7%.

Management is stating that the current economic environment makes it extremely difficult to know how the consumer will respond in the second half of the year. The company normally banks on a better second half to make up ground in terms of earning, but this time around, it can't say for certain whether this year will follow the same pattern.

The company is forecasting annual earnings in the range of $1.03 to $1.15 per share, well below Reuters consensus estimates of $1.31.

We are still avoiding shares of the company at this point. We had initiated coverage of the stock back in early June, when shares were trading above the $22 level. Despite the stock being down 20% from those levels, we are not optimistic enough to see a reason to own the shares. The stock has a dividend yield of 2.60%, based on last night's closing stock price of $18.44.

William Sonoma is not a recommended dividend stock at this time, holding a Dividend.com rating of 2.9 out of 5 stars.

Brown Forman Misses Earnings, Cites Rising Grain and Energy Costs

Alcoholic beverage giant Brown Forman Brown Forman (BF-B Quote - Cramer on BF-B - Stock Picks) just reported its quarter numbers that showed net income fell to $88.2 million, or 73 cents per share, from $95.3 million, or 77 cents per share, a year ago. Revenues rose 7% to $790.0 million, but earnings per share were three cents less than analysts had expected.

The company's gross profit growth lagged underlying net sales trends, as grain and energy cost pressures outpaced the rate of price increases. The company cut its fiscal 2009 earnings outlook to a range of $3.60 to $3.85 per share, from a prior range of $3.73 to $3.98 per share, due to a $22 million charge stemming from an abnormal number of dying agave plants, used to make tequila.

We have decided to remove the stock from our "Recommended" list. The stock is trading at 20 times next year's estimates and outside of a possible takeover of the company, the stock lacks a true catalyst. The company's dividend yield of 1.77%, based on last night's closing stock price of $77.02, is not exciting us either.

Brown Forman is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.