The team at Motley Fool Million Dollar Portfolio has a thing for dividend-paying companies. It's nothing personal; it's just that Ron Gross and his colleagues enjoy getting paid to invest. Today, Ron shares three such companies that he's watching for possible inclusion in his real-money portfolio. For your investing convenience, you can now create your own version of My Watchlist, free and easy from the Fool -- just go to www.MyWatchlist.com or click on one of the links at the bottom of this article.
One to watch
Ron and the team are waiting to see if regulators will permit the company to raise rates high enough to allow profitable investment in its infrastructure and they're watching the share price closely.
Two to watch
Ron's also intrigued by payroll processor Automatic Data Processing
Ron appreciates that ADP has $1.2 billion in cash and almost no debt, as well as a dividend yield of 3%, but he thinks it's a little pricey at the moment. But with this business model firing on all cylinders, he's keeping an eye on the company. He wants to see how rising interest rates will affect cash flow as ADP pockets additional interest on the money it holds for employers, and whether that's already built into the stock price.
Three to watch
Finally, Ron goes to the way-back machine for a recommendation from the February 2005 issue of Income Investor, Unilever
While its stable of brands is gaining popularity around the world, the team is hoping some headwinds make Unilever less appealing to investors. Rising food prices will put pressure on Unilever's margins and Europe's economic difficulties could make the sailing a bit choppy, but these are short-term stumbling blocks. Wrote Tim, "Our hope in 2011 is that the market sours on this blue chip for these reasons, giving us an attractive entry point to own world-class brands, an attractive emerging markets growth story, and a 4% dividend yield as part of our basket of stocks that is protecting us from a decline in the value of the dollar."
And that's why it pays to watch. Keep your eyes on all of these companies by adding them to My Watchlist, your free and customized hub for the news and numbers on the companies you care about. Just click below to start.
Roger Friedman doesn't own shares of any of the companies mentioned above, but he'll be watching them. Unilever is a Motley Fool Global Gains selection. Automatic Data Processing, National Grid, and Unilever are Motley Fool Income Investor picks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.