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At times like this, when we have increasing inflation on the horizon combined with increased market volatility, dividends are king.

In this article I will review the five newest "dividend kings", stocks that have been consistently paying high dividend yields with the cash flows to support dividend growth. The "dividend kings" analysis takes a long-term view, specifically ten years, to determine whether stocks have the fundamentals to support their dividend yield and also grow through capital appreciation. These are the best long ideas using the dividend kings analysis:

Johnson and Johnson (NYSE:JNJ)

Johnson and Johnson has a market cap of $175.29 billion, and is currently trading at around $64, with a price to earnings ratio of 15.66. Its 52 week trading range is $57.50 to $68.05. It reported third quarter 2011 earnings of $16.01 billion, a decrease from second quarter earnings of $16.60 billion. Third quarter net income was $3.20 billion, a substantial increase from second quarter net income of $2.78 billion. It has quarterly revenue growth of 6.8%, a return on equity 19.18% and pays a dividend with a yield of 3.7%.

One of Johnson and Johnson’s competitors is Abbott Laboratories (NYSE:ABT), which has a market cap of $84.87 billion and is currently trading at around $54, with a price to earnings ratio of 18.79. It has quarterly revenue growth of 13.2%, a return on equity of 19.71% and pays a dividend with a yield of 3.6%. This data indicates that it is out performing Johnson and Johnson.

Johnson and Johnson’s cash position has improved in the last quarter. Its balance sheet showed $15.62 billion in cash for the third quarter 2011, an increase from $14.97 billion in the second quarter. Its quarterly revenue growth of 6.8%, versus an industry average of 10.5%, and a return on equity of 19.18%, versus an industry average of 15.8%, indicates that it is lagging behind many of peers in revenue growth but it’s achieving a greater return on equity.

The earnings outlook for companies in the drug manufacturing industry is currently subdued, due to the poor economy and high unemployment. It has been a challenging year for many drug manufacturers, although many were able to offset declining revenue growth with domestic price increases and increasing access to emerging markets. Moody’s believes that 2012 will be an even more challenging year for participants in this industry.

Johnson and Johnson has been able to increase its quarterly net income despite declining revenues and strengthen its balance sheet in what is a difficult operating environment. In addition, the company has strong performance indicators, pays a dividend with an attractive yield and has been consistently paying a dividend since 1972. On this basis Johnson and Johnson is a solid dividend yield play for any investment portfolio and I rate Johnson and Johnson as a buy.

AT&T Inc (NYSE:T)

AT&T has a market cap of $170.67 billion and is trading at around $29, with a price to earnings ratio of 14.61. Its 52 week trading range is $27.20 to $31.94. It reported third quarter 2011 earnings of $31.48 billion, a decrease from second quarter earnings of $31.50 billion. Third quarter net income was reported at $3.62 billion, an increase from second quarter net income of $3.59 billion. It has quarterly revenue growth of -0.3%, a return on equity of 10.54% and pays a dividend with a yield of 6.2%.

One of AT&T’s competitors is Sprint Nextel Corporation (NYSE:S), which has a market cap of $7.80 billion and is trading at around $2.50. It has quarterly revenue growth of 2.2% and a return on equity of -17.56%. Based on these indicators AT&T is outperforming Sprint Nextel.

AT&T’s cash position has declined in the last quarter. The balance sheet showed $3.76 billion in cash for the third quarter, a decrease from $3.96 billion cash in the second quarter. The net tangible assets have increased to -$9.54 billion in the third quarter from -$9.27 billion in the second quarter. Its quarterly revenue growth of -0.3%, versus an industry average of 22.4%, and a return on equity of 10.54%, versus an industry average of 13.3%, indicates that it is underperforming many of its peers.

The earnings outlook for the wireless communications industry remains positive even when considering the current economic uncertainty, low economic growth and high unemployment. This is primarily because it is a major infrastructure product for both developed and emerging countries. Accordingly the industry is seen as a major driver of economic recovery through increased capital expenditure on key infrastructure.

AT&T has been able to increase its quarterly net income despite declining revenues in a difficult operating environment. In addition, the company has a solid return on equity and is paying a dividend with a highly attractive yield, which has been steadily increasing in value since 1999. Despite the recent decrease in cash holdings I believe the company is a solid dividend yield play for any investment portfolio and I rate AT&T as a buy.

Altria Group Inc (NYSE:MO)

Altria has a market cap of $58.24 billion and is trading at around $28, with a price to earnings ratio of 16.97. Its 52 week trading range is $23.20 to $28.57. Third quarter 2011 earnings of $6.11 billion were reported, an increase from second quarter earnings of $5.92 billion. Third quarter net income was $1.17 billion, a substantial increase from second quarter net income of $444 million. It has quarterly revenue growth of -3%, a return on equity of 72.12% and pays a dividend with a yield of 5.9%.

One of Altria’s competitors is Lorillard Inc (NYSE:LO), which has a market cap of $14.9 billion and is trading at around $110, with a price to earnings ratio of 14.86. It has quarterly revenue growth of 3.7% and pays a dividend with a yield of 4.8%. Based on this data Lorillard is delivering superior earnings growth but is lagging behind Altria’s return on equity.

Altria’s cash position has improved in the last quarter. The balance sheet showed $3.04 billion in cash for the third quarter 2011, an increase from $2.06 billion in the second quarter. The net tangible assets have decreased to -$12.86 billion in the third quarter 2011, from -$12.65 billion in the second quarter. Its quarterly revenue growth of -3%, versus an industry average of 6%, and a return on equity of 72.12%, versus an industry average of 57.1%, indicates that it is overall underperforming many of its competitors.

On initial impressions the tobacco industry earnings outlook looks very poor with increased regulatory pressure, a depressed economy and unemployment in excess of 7%, which is having a direct affect on consumer sentiment, all of which is driving down discretionary spending. However, there is a view that tobacco companies will manage the current regulatory pressures and be able to increase earnings through increased pricing, cost cutting and value chain management.

Altria represents a solid investment opportunity as it has reported a substantial increase in net income and strengthened its balance sheet through increased cash holdings. In addition, it currently pays a dividend with a very attractive yield, and the company has been consistently paying a dividend since 1989. Accordingly, I believe that Altira is a solid income generating stock and I rate Altira as a buy.

The Coca-Cola Company (NYSE:KO)

Coca-Cola has a market cap of $152.88 billion, and is currently trading at around $67, with a price to earnings ratio of 12.38. Its 52 week trading range is $61.29 to $71.77. It reported third quarter 2011 earnings of $12.25 billion, a decrease from second quarter earnings of $12.74 billion. Third quarter net income was $2.22 billion, a substantial decrease from second quarter net income of $2.80 billion. It has quarterly revenue growth of 45.4%, a return on equity of 41.32% and it pays a dividend with a yield of 2.9%.

One of Coca-Cola’s competitors is Pepsico Inc (NYSE:PEP), which has a market cap of $99.76 billion and is trading at around $64, with a price to earnings ratio of 16. It has quarterly revenue growth of 13.3%, a return on equity of 29.03% and pays a dividend with a yield of 3.3%. Based on these indicators it is underperforming Coca-Cola.

Coca-Cola’s cash position has substantially improved in the last quarter. The balance sheet showed $12.68 billion in cash for the third quarter 2011, an increase from $10.17 billion in the second quarter. The net tangible assets have decreased, to $5.73 billion in the third quarter 2011, from $7.68 billion in the second quarter. Coca-Cola’s quarterly revenue growth of 45.4%, versus an industry average of 14.3%, and a return on equity of 41.32%, versus an industry average of 27%, indicates that it is outperforming the majority of its competitors.

The earnings outlook for the beverages and soft drinks industry is relatively downbeat due to the difficult market conditions caused by the poor economic climate, continuing high unemployment and negative consumer sentiment, all of which have had a significant impact on consumer discretionary spending.

Pfizer Inc (NYSE:PFE)

Pfizer has a market cap of $152.89 billion and is currently trading at around $20, with a price to earnings ratio of 13.81. Its 52 week trading range is $16.25 to $21.45. It reported third quarter 2011 earnings of $17.19 billion, an increase from second quarter earnings of $16.98 billion. Third quarter net income was reported at $3.74 billion, an increase from second quarter net income of $2.61 billion. It has quarterly revenue growth of 7.5% and a return on equity of 11.45% and pays a dividend with a yield of 4.3%.

One of Pfizer’s competitors is Novartis AG (NYSE:NVS), which has a market cap of $130.77 billion and is trading at around $54, with a price to earnings ratio of 12.74. It has quarterly revenue growth of 17.3%, a return on equity of 15.56% and a pays a dividend with a yield of 3.8%. Based on these indicators it is outperforming Pfizer.

Pfizer’s cash position has significantly improved in the last quarter. The balance sheet showed $3.71 billion in cash for the third quarter an increase from $3.10 billion in the second quarter. Pfizer’s quarterly revenue growth of 7.5%, versus an industry average of 10.5%, and a return on equity of 11.45%, versus an industry average of 15.8%, indicates that it is underperforming many of its competitors.

As stated earlier the outlook for companies in the drug manufacturing industry is poor, primarily due to the poor economic climate, high unemployment and negative consumer sentiment. Despite the negative industry outlook, I believe that Pfizer represents a solid investment opportunity on the basis of being able to increase both earnings and net income in a difficult operating environment. The company has also been able to strengthen its balance sheet by substantially increasing its cash holdings. In addition, Pfizer currently pays an attractive dividend yield in excess of 4% and it has been consistently paying a dividend since 1980. On this basis it makes an attractive dividend play and I rate Pfizer as a buy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.