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In its report titled "Profit Outlook 2012, a Pivotal Election Year," released on December 1, 2011, UBS has identified "dividend fountains," i.e. stocks that have over 2.5% dividend yield and a dividend growth of over 5%, and are expected to outperform the market. The report isn't freely available, but we will review their analysis in a series of articles.

Lorillard Inc (NYSE:LO) has a Buy rating from UBS. The company has an indicated yield of 4.8% (annualized quarterly dividend) and the full year's dividend payout ratio is expected to be 63.5%. Lorillard is in the business of manufacturing and marketing cigarettes and, due to the stable nature of its business, has a very low beta of 0.29. The company has a steady balance sheet and is trading at a forward price-to-earnings ratio of 13x.

Philip Morris International (NYSE:PM) has a Neutral rating from UBS. However, the company has the second highest indicated yield of 4.4% in the list of 25 high dividend stocks. The company's estimated payout for 2011 is 58.3%. Philip Morris International manufactures cigarettes and is the name behind seven big international brands including Marlboro and Virginia Slims. The stock is up by over 35% in the last year.

General Electric Co. (NYSE:GE) has a Buy rating at UBS. Indicated yield for the company is 3.8%. The company's payout ratio for 2011 is estimated to be 43.9%. General Electric operates in the industrial sector and has its own transportation, capital, home and business segments. Its earnings were up by 56% in the last quarter and it has a healthy profit margin of 10%. The stock is trading at a forward price-to-earnings ratio of 12x.

International Paper Co. (NYSE:IP) has a Buy rating from UBS. The company has an indicated yield of 3.8% and the full year's dividend payout ratio is expected to be 31.6%. International Paper is a paper and packaging company and operates on an international level. Although the stock has a high beta of 2.5, its financial performance has been quite good. Its earnings showed a growth of 30%. International Paper is trading at a forward price-to-earnings ratio of 9.9x.

Darden Restaurants Inc. (NYSE:DRI) has a Buy rating from UBS. It has an indicated yield of 3.6% and 2011's dividend payout ratio is expected to be 37%. The company runs restaurants in the United States and Canada. With a drop in stock prices last year, the company is trading at forward price-to-earnings ratio of 11x.

H.J. Heinz Co. (HNZ) has a Buy rating at UBS. The stock has an indicated yield of 3.6%. The company's 2011 dividend payout ratio is expected to be 58%. Heinz is a world renowned brand in the foods industry and, despite the flat performance of S&P 500 in the last year, the stock is up by 10%. Revenues have continued to grow, showing an 8% increase in the last reported quarter. The stock is trading at a forward price-to-earnings ratio of 14x.

Abbott Laboratories (NYSE:ABT) has an indicated yield of 3.6%. Abbott is an established brand in the healthcare sector. With a beta of 0.32, the stock has low volatility. In the past year, it was up by 18%. The company's 2011 dividend payout ratio is expected to be 40.2% and it has a Buy rating from UBS.

Johnson & Johnson (NYSE:JNJ) has an indicated yield of 3.5%. The company has a Buy rating from UBS. Its 2011 dividend payout ratio is expected to be 46%. Even though Johnson & Johnson is more known for its products like Tylenol, the major contributors to its revenues are medical and pharmaceutical devices. These product lines ensure steady growth and lend stability to the company. The stock has a low volatility of 0.52 and is trading at a forward price-to-earnings ratio of 12x.

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