VF Corp. Cuts Outlook but Raises Dividend

Clothing and apparel maker VF Corp. lowered its revenue-growth forecast as the consumer spending slowdown has affected the company's clothing sales.

The company, whose brands include Wrangler, Lee, Rustler, Rider, and more, is cutting its revenue growth forecast to as little as 4%, which is half of its original forecast. The company said the second half of September marked a turning point in market conditions, with a deepening global financial crisis directly affecting consumer sentiment.

Despite the tough news, the company still managed to raise its quarterly cash dividend by 1 cent to 59 cents a share.

We had removed shares of VFC from our Recommended List back on Oct. 6, when shares were trading at $72.41. We were concerned that a slowdown was quickly materializing in the retail space, and made a move to downgrade several other retail names, as well.

We like VFC's attractive new dividend yield of 4.03%, based on last night's closing stock price of $58.50. Couple that with a 10 times 2009 earnings valuation, and we're putting this stock on our upgrade watch list.

VF is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars. Genuine Parts Hits Earnings Target, Despite Auto Sector Woes

Genuine Parts ( GPC) reported earnings edged higher as revenue in its electrical and industrial units made up for weaker results in its automotive group.

The company's electrical division sales rose 13% during the quarter, while revenue at Motion Industries, its industrial group, rose 7%. These gains offset the flat results in its automotive and office products group.