Farr Sees Much Risk

Michael Farr of Farr,Miller and Washington says he doesn't see how the financial sector leadership can continue.There's a lot of risk and red flags out there.The increasing unemployment and consolidating consumer are examples.I'm kind of bothered by this urgency toward optimism,he complained.The economic data don't show us that it's over.The economic decline hasn't stopped,but it's slowing.Mr.Farr likes Clorox,Procter and Gamble and Johnson and Johnson.

Steady Dividend Stocks

RBC Capital Markets likes these stocks for the sanctity of their dividends:Procter and Gamble,Conoco Phillips,PepsiCo,AT and T,Johnson and Johnson.They also like the limited partnership Kinder Morgan Energy Partners.

Berkshire Adjustments

Warren Buffett's Berkshire Hathaway has been adjusting its portfolio.It increased its stake in Johnson and Johnson by 3.9 million shares;lowered its stake in United Healthcare by about 2 million shares;added 500,000 more shares of Union Pacific;and also added to its holdings in Burlington Northern,Wells Fargo,U.S. Bancorp and Nalco Holdings.

Dividend Increases

IBM has raised its dividend by 10% to 0.55 a share.Other firms who have raised theirs are 3M,Wal-Mart,Johnson and Johnson,and Exxon Mobil.

Bob Doll's Picks

Bob Doll,Chief Investment Officer at Black Rock,recommends Johnson and Johnson(JNJ).We like its diversification;we like its valuation,Mr.Doll said.Hewlett Packard(HPQ) runs its business carefully,and Exxon Mobil(XOM) is very conservatively run and well managed,according to Bob Doll.

Why JNJ

Morgan Stanley(MS) has an overweight rating on Johnson and Johnson(JNJ) because: 1.It has a robust drug pipeline,2.It has a big global footprint,3.It buys back 5-6 billion of its shares a year.