Current Dividend Yield: 3.4%
Performance So Far in 2012: +10%
E.I. du Pont de Nemours & Co. (NYSE:DD), colloquially known just as DuPont, is a chemicals giant with more crazy plastics and coatings than you can shake a synthetic stick at. Products include including Tyvek house wrap, Teflon non-stick coatings and stretchy Lycra synthetic fabrics.
Obviously, these items aren’t as sexy as a slick smartphone or a luxury automobile. But the innovation is clear at DuPont, and its reach is broad, so it doesn’t really have to worry about one sector or one set of economic data points. This makes it a great long-term investment.
DD stock admittedly lagged the market in 2011 with an 8% decline but has topped the Dow slightly this year. It has refocused its strategy, including a pending sale of its auto paints business to the Carlyle Group (NASDAQ:CG) for about $5 billion.
And as InvestorPlace’s Dan Burrows points out, “The stock is trading 17% below its own five-year average on a forward earnings basis, while ROE is a very shareholder-friendly 30%.”
The icing on the cake is the 3.4% yield after DuPont added another 2 cents to its quarterly payday, proving this industrial company is not just preserving dividends — but improving them.