EcolabEcolab (ECL) built a $19 billion business on being clean. The firm is one of the biggest providers of sanitation products used by healthcare, food service, and industrial operations worldwide. The firm's reach is one of its biggest positive attributes -- because Ecolab is the standard bearer for the industry, it's able to capture favorable deals on reputation alone.
Sanitation is an attractive business for two reasons: it's absolutely critical, and it's relatively cheap. In other words, Ecolab's customers care a whole lot more about being sanitary (and avoiding the plethora of downside attached to a dirty restaurant or hospital) than they do about the minimal costs that high-quality cleaning supplies tack onto their income statements.
ECL is yet another stock with a lot riding on revenues abroad. There's considerable room for Ecolab to expand internationally, particularly in emerging economies, where sanitation mandates are only just starting to catch up with Ecolab's existing markets. If the company can spend the resources on growing its sales and distribution base internationally, that investment should pay off considerably in the next several years.The company's 20-cent dividend marks a 1.2% yield, a payout level that's well below ECL's average yield on a historic basis. That leaves room for a dividend hike in 2012.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV