dividend co's with long history growth

7/29/2019 Dividend Co's With Long History Growth

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Capital Markets Equity ScreensF E B R U A R Y 2 7 2 0 1 3

United States

Past performance is not a guarantee of future performance.

Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.

Investing in smaller/mid-cap companies involves greater risks not associated with investing in more established companies, such as business risk,significant stock price fluctuations and illiquidity.

Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because ofthese high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growthexpectations.

Information provided herein has been obtained from outside sources that are deemed to be reliable. However, Morgan Stanley WealthManagement has not independently verified them and we make no guarantees, express or implied, as to their accuracy or completeness or as towhether they are current.

This material has been prepared for informational purposes only and is not an offer to buy or sell or a solicitation of any offer to buy or sell anysecurity or other financial instrument or to participate in any trading strategy. This is not a research report and was not prepared by the researchdepartments of Morgan Stanley & Co. LLC, Morgan Stanley Smith Barney LLC or Citigroup Global Markets Inc. It was prepared by MorganStanley Wealth Management sales, trading or other non-research personnel. Past performance is not necessarily a guide to future performance.

Please see additional important information and qualifications at the end of this material.

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Companies with a Long History of

Dividend Payment/Growth

This report is prepared on a monthly basis according to the criteria listed below.These criteriaare pre-set and will not be adjusted in this or future reports.Accordingly, the securities listed have not been individually reviewed by theauthor nor is the author recommending these securities.

Focus This report identifies those stocks in the research coverage universe ofMorgan Stanley & Co. LLC (Morgan Stanley) and Citi Research (Citi) which havea long history of dividend payment and growth.

Criteria The identified stocks have historically achieved an annualizeddividend growth rate of 5% or better over a 15 year trailing period. Please note pastperformance is not a guarantee of future performance.

Stocks must be Overweight or Equal-Weight rated by Morgan Stanley Researchand/or Buy (1) or Neutral (2) Rated by Citi Research

Market-capitalization greater than $2 billion

Dividend Yield greater than or equal to S&P 500 Yield

Closing price greater than or equal to $3

Current dividend payout < 60% of the current year's EPS estimate, in order to avoidstocks that have potentially unsustainable dividend levels.

Reminder This list should be used as a starting point only. This is not aresearch report. Please ask your Financial Advisor for a copy of currentfundamental research on those stocks which appear to be of interest.

Morgan Stanley Wealth Management

Capital Markets

Miro Pasic

Casey Galligan

Simon Kong

Sean Diffley

Herwin Yip

John Storey


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This material is not a solici tation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material was notprepared by the research departments of Morgan Stanley & Co. LLC, Morgan Stanley Smith Barney LLC or Citigroup Global Markets Inc. Please refer to importantinformation and qualifications at the end of this material.

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Figure 1. Companies with a Long History of Dividend Payment/Growth

Mktcap Price Div. 15Yr Div. Payout MS MS Industry Citi

Sector Company Name ($ mil) 02/26/13 Yield Growth Ratio Rating View Rating

Health Care CAH Cardinal Health Inc. 15,573.89 45.69 2.41% 24.6% 32% OW In-Line 1

Energy HFC HollyFrontier Corp. 11,030.77 54.30 2.21% 24.6% 17% OW Attractive 2H

C. Discre. HD Home Depot Inc. 101,014.29 67.56 2.31% 24.2% 44% EW In-Line 1

Financials AFL AFLAC Inc. 22,832.64 48.81 2.87% 20.4% 22% EW In-Line 1C. Staples WMT Wal-Mart Stores Inc. 237,879.88 71.11 2.64% 19.2% 35% EW In-Line 1

Materials PX Praxair Inc. 32,856.20 110.58 2.17% 18.5% 40% EW Attractive 1

Health Care MDT Medtronic Inc. 44,621.11 44.12 2.36% 17.1% 28% EW In-Line 1

C. Discre. TGT Target Corp. 41,683.36 64.05 2.25% 16.7% 30% OW In-Line 1

C. Discre. PII Polaris Industries Inc. 5,777.79 83.73 2.01% 15.1% 33% 1

Health Care JNJ Johnson & Johnson 211,745.40 75.75 3.22% 12.9% 45% EW In-Line 1

C. Staples PEP PepsiCo Inc. 116,665.26 75.62 2.84% 12.1% 49% OW In-Line 2

Industrials GD General Dynamics Corp. 23,648.87 66.91 3.05% 12.0% 30% 1

Financials ACE ACE Ltd. 28,937.58 85.03 2.31% 11.9% 25% OW In-Line

C. Discre. JCI Johnson Controls Inc. 21,097.62 30.83 2.47% 11.8% 29% OW In-Line 2

C. Staples CL Colgate-Palmolive Co. 53,275.37 113.91 2.18% 11.5% 43% OW In-Line 2

C. Staples PG Procter & Gamble Co. 207,824.02 76.08 2.95% 11.0% 55% EW In-Line 1

Industrials DE Deere & Co. 33,571.09 86.50 2.13% 10.7% 21% 1

C. Discre. VFC VF Corp. 17,415.70 158.03 2.20% 10.6% 32% 1C. Staples CLX Clorox Co. 10,951.04 83.62 3.06% 10.0% 59% EW In-Line 1

C. Discre. OMC Omnicom Group Inc. 14,923.67 57.09 2.80% 9.7% 40% EW Attractive 1

C. Staples KO Coca-Cola Co. 170,929.52 38.11 2.94% 9.6% 52% EW In-Line 1

Industrials ETN Eaton Corporation PLC 27,587.84 59.56 2.55% 9.5% 35% 1

C. Staples HSY Hershey Co. 13,341.52 81.62 2.06% 9.3% 46% EW In-Line 1

C. Discre. LTD Limited Brands Inc. 12,581.67 43.63 2.75% 8.9% 41% OW Cautious 1

Industrials CR Crane Co. 3,015.83 52.59 2.13% 8.1% 26% 1

Energy CVX Chevron Corp. 223,332.56 114.96 3.13% 8.0% 29% OW Attractive 1

Industrials NOC Northrop Grumman Corp. 15,427.48 65.06 3.38% 7.9% 31% 1

Industrials EMR Emerson Electric Co. 40,522.73 56.12 2.92% 7.0% 46% EW In-Line 1

Energy XOM Exxon Mobil Corp. 398,472.03 88.51 2.58% 7.0% 29% EW Attractive 1

Health Care BAX Baxter Internat ional Inc. 36,451.68 66.77 2.70% 6.5% 38% OW In-Line 2

Industrials HON Honeywell International Inc. 54,175.43 69.12 2.37% 6.4% 33% OW In-Line 1Industrials MMM 3M Co. 70,592.88 102.31 2.48% 6.0% 37% OW In-Line 2

Industrials RTN Raytheon Co. 17,691.70 54.21 3.69% 5.9% 37% 1

C. Staples GIS General Mills Inc. 29,749.88 46.01 2.87% 5.7% 49% OW In-Line 1

Materials RPM RPM International Inc. 3,969.30 29.99 3.00% 5.3% 49% OW Attractive

Utilities MDU MDU Resources Group Inc. 4,458.30 23.61 2.92% 5.1% 53% EW Attractive 1

Industrials SWK Stanley Black & Decker Inc. 12,220.74 76.26 2.57% 5.0% 36% OW In-Line

Source: Factset; Morgan Stanley Research; Citi Research


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This material is not a solici tation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material wasnot prepared by the research departments of Morgan Stanley & Co. LLC, Morgan Stanley Smith Barney LLC or Citigroup Global Markets Inc. Please refer toimportant information and qualifications at the end of this material.

Morgan Stanley & Co. LLC Research Ratings Definitions

Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated, or Underweight. Morgan Stanley does notassign ratings of Buy, Hold or Sell to the stocks covered. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, holand sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Research. In addition, since Morgan Stanley Researchcontains more complete information concerning the analyst's view, investors should carefully read Morgan Stanley Research, in its entirety, and noinfer the contents from the ratings alone. In any case, ratings (or research) should not be used or relied upon as investment advice. An investor'sdecision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations.

Overweight (OW): The stock's total return is expected to exceed the average total return of the analyst's industry (or industry team's) coverageuniverse, on a risk-adjusted basis, over the next 12-18 months.

Equal-weight (EW): The stock's total return is expected to be in line with the average total return of the analyst's industry (or industry team's)coverage universe, on a risk-adjusted basis, over the next 12-18 months.

Underweight (U): The stock's total return is expected to be below the average total return of the analyst's industry (or industry team's) coveraguniverse, on a risk-adjusted basis, over the next 12-18 months.

Not-Rated (NR): Currently, the analyst does not have adequate conviction about the stock's total return relative to the average total return ofthe analyst's industry (or industry team's) coverage universe, on a risk-adjusted basis, over the next 12-18 months.

In addition to analyst stock ratings, Morgan Stanley provides the analysts industry views:

Attractive (A): Performance of industry coverage universe over the next 12 to18 months is expected to be attractive versus the relevant broadmarket benchmark.*

In Line (I): Performance of industry coverage universe over the next 12 to18 months is expected to be in line with the relevant broadmarket benchmark.*

Cautious (C): Performance of industry coverage universe over the next 12 to18 months is viewed with caution versus the relevant broadmarket benchmark.*

Citi Research Ratings Definitions

Citis stock recommendations include an investment rating and an optional risk rating to highlight high risk stocks. The risk rating takes

into account both price volatility and fundamental criteria. Stocks will either have no risk rating or a High risk rating assigned.

Investment Ratings: Citi's investment ratings are Buy (1), Neutral (2) and Sell (3). Citis ratings are a function of analyst expectations of

expected total return (ETR) and risk. ETR is the sum of the forecast price appreciation (or depreciation) plus the dividend yield for a

stock within the next 12 months.

Citis investment rating definitions are: Buy (1) ETR of 15% or more or 25% or more for High risk stocks; and Sell (3) for negative ETR

Any Citi covered stock not assigned a Buy o r a Sell is a Neutral (2). For stocks rated Neutral (2), if a Citi analyst believes that there are

insufficient valuation drivers and/or investment catalysts to derive a positive or negative investment view, they may elect with the

approval of Citi management not to assign a target price and, thus, not derive an ETR. Citi analysts may place covered stocks Under

Review in response to exceptional circumstances (e.g. lack of information critical to the analyst's thesis) affecting the company and / or

trading in the company's securities (e.g. trading suspension). As soon as practically possible, the Citi analyst will publish a note re-

establishing a rating and investment thesis. To satisfy regulatory requirements, Citi corresponds Under Review and Neutral to Hold in its

ratings distribution table for Cit is 12-month fundamental rating system. However, Citi reiterates that it does not consider Under Review

be a recommendation.

Prior to October 7, 2011, Citi used a different stock recommendation system. Please refer to a Citi research report for a complete

description of Citis prior and current recommendation system and for more information regarding Citi.

* Benchmarks include North America: S&P 500, Latin America: relevant MSCI country index, Europe: MSCI Europe, Japan: TOPIX and Asia:relevant MSCI country index.

For important disclosures (including copies of historical disclosures) regarding the securities and/or companies that are the subject of this material,please contact Morgan Stanley Wealth Management Research, 522 Fifth Ave., New York, N.Y. 10036, Attention: Research Management. Inaddition, the same important disclosures, with the exception of the historical disclosures, are contained on the Firm's disclosure website athttps://www.morganstanleysmithbarney.com/researchdisclosures. Historical disclosures will be provided upon request back to June 1, 2009.


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dividend co's with long history growth

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