We had removed the shares of PFE from our "Recommended" list on Nov.12, when the stock was trading at $16.77. The company has a dividend yield of 4.57%, based on last night's closing stock price of $13.99. The stock has technical support in the $7-$11 price range. If the shares can firm up, we see overhead resistance in the $15-16 price area. We would remain on the sidelines for now.
Management said the current economic slowdown and resulting weakness in the home furnishings business in particular led it to conclude that the single-format Costco Home concept did not fit into its long-term expansion plans. The company recently announced a second-quarter profit of $239.7 million, or 55 cents per share, compared with $327.9 million, or 74 cents per share, in the year-ago period. We had removed shares of COST from our "Recommended" list on Sept.22, when the stock traded at $66.09. The company has a dividend yield of 1.38% based on last night's closing stock price of $46.35. The stock has key support in the $43-$44 price area. There is the potential for the stock to gap down to the low $30s if those levels fail to hold again. If the shares can turn around, we see overhead resistance around the $51-$55 price levels. We would remain on the sidelines. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system. TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009, is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. To see how your portfolio can use this research, click here now!