Sunday, February 25, 2007

More defensive stock / naked put ideas

Besides ADM and ALL both defensive names with good financials and dividends, here are two more worth considering that will diversify the portfolio: FTD and KMB.

Both have dividends over 3%. FTD is a demographics play as the boomers get older and wealthier they should be sending more gifts and flowers to each other. Also, florists are a consolidating industry and FTD will be the consolidator. Kimberly-Clark is also in the out of favor paper products industry and is a consumer staples company with global presence, so has good long term prospects.