Dividend.com: UnitedHeallth Looking Better

We had removed shares of Dow Chemical from our "Recommended" list back on Sept. 29, when the shares were trading at $33.97. The company has a 9.06% dividend yield, based on Friday's closing stock price of $18.55. We are cautious on the company's ability to continue paying it currently large dividend payout. A dividend cut would not surprise us, and that would actually be a better thing for the company long-term, as its debt load will increase significantly with the closure of the Rohn & Haas deal. We'd continue to look elsewhere for better investment opportunities.

Dow Chemical is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.

Johnson & Johnson's Pays a Nearly 100% Premium for Breast Implant Maker

Johnson & Johnson(JOHNSON & JOHNSON Quote) has just announced a deal to acquire breast implant maker Mentor(MNT Quote) for $1.07 billion or $31 a share in cash.

Mentor posted $373 million in sales in its most recent fiscal year. The acquisition would give Johnson & Johnson a larger presence in the market for aesthetics products.

We had removed shares of Johnson & Johnson from our "Recommended" list on Nov. 12, when the shares traded at $59.55. The company has a 2.83% dividend yield, based on Friday's closing stock price of $58.58. We are surprised that Johnson & Johnson paid as high as a premium it did for Mentor. In an environment where we are seeing few acquisitions, the nearly 100% premium seems too aggressive. Also, the economy is not exactly buzzing at the moment, so breast implants are likely not at the top of a consumers' priority list. Johnson & Johnson is an aggressive acquirer, and the dealmaking will likely continue. We just don't know if there is a need to be overly aggressive in the purchase price.