Cosmetics and fragrance manufacturer Estee Lauder (EL) is a household name that owns a handful of other well-known beauty brands: EL owns popular names like Clinique in addition to mall staples M-A-C and Origins. That's enough makeup power to give EL a 25% share of the world's high-end cosmetics market, a segment that's managed to hold up surprisingly well in spite of the global slowdown in consumer discretionary spending.
Even though 60 cents of every dollar EL generates comes from overseas, the firm still has plenty of room to expand its reach abroad, particularly in emerging markets where a burgeoning population of middle class women is eager to trade up their makeup. Revenues have already eclipsed pre-recession highs, and the firm has built up enough cash on its balance sheet to neutralize its debt load.>>6 Sucker Stocks to Avoid at All Costs That financial success has helped Estee Lauder to increase its annual dividend in each of the last two years. At present, the firm's payout is a split-adjusted 52 cents per share, a number that I see increasing in 2012. Concentrated ownership from the Lauder family should help put an impetus on a bigger shareholder payout.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV