I'm going to tell you about five stocks that do almost all of their business in the U.S.A. Why the emphasis on U.S. stocks?
Thanks to debt problems threatening to spin out of control, Europe is sinking into recession. Since exports are what drives China's economy, the European recession is cutting demand, and thus, slowing China's economic growth. The same holds true for other emerging economies. Also, thanks to weakened demand from China, prices of many commodities such as crude oil and copper are falling.
Meanwhile, back in the U.S.A., despite mixed recent reports, most economists expect our economy to continue in recovery mode. What's more, lower commodity prices will lower costs for many manufacturers, further spurring growth here. Thus, for stock investors, the U.S. is the best game in town.
As is often the case, my suggested stocks all pay relatively high dividends, thus paying you to wait out any market stumbles. Here's the list.
B&G Foods (BGS)
In business for more than 115 years, B&G manufactures a diverse portfolio of packaged foods that it markets to supermarket chains, mass merchants, warehouse clubs and specialty food distributors in the U.S., Puerto Rico, and Canada. Wal-Mart, its biggest customer, accounts for 14% of sales. Brands include Ac'cent, B&G, Emerils, Trappey, Ortega, Grandma's, Brer Rabbit and Underwood. In 2007, B&G bought Kraft's hot cereal business, including the Cream of Wheat and Cream of Rice brands. In December 2011, B&G acquired the Mrs. Dash, Molly McButter, Sugar Twin, Baker's Joy, Static Guard and Kleen Guard brands from Unilever. B&G's dividend yield (next 12-months expected dividends divided by recent share price) is 4.1%.
Computer Programs & Systems (CPSI)
Develops, installs and supports financial and clinical information management systems for small and mid-sized hospitals. Its client base includes more than 650 community and small specialty hospitals in 46 states. Computer Programs is benefiting from the current push by the government to encourage hospitals to automate their healthcare systems (3.3% dividend yield).
Entertainment Properties Trust (EPR)
Entertainment Properties is organized as a Real Estate Investment Trust (REIT). Unlike regular corporations, REITs do not pay federal income taxes as long as they distribute at least 90% of their taxable income to shareholders in the form of dividends. Their shares, however, trade the same as other corporations.
When it started in 1997, Entertainment Properties' business plan was to purchase megaplex theater complexes from the theater owners and operators and then lease the theaters back to the operators. That is still its main business and EPR owns a portfolio of 112 megaplex multi-screen theater complexes with stadium seating that it leases to major theater operators. That's a good business and its theater properties are typically 100% leased.
In recent years, Entertainment Properties has expanded beyond theaters and now also owns entertainment retail centers that house restaurants and retail stores in addition to movie theaters. It has further diversified by building ski and snowboarding parks in urban areas, and charter school properties. As is the case for theater properties, Entertainment Properties leases these properties to experienced operators. One venture that did not work was winery and vineyard properties. It is attempting to sell those properties (7.2% yield).
Genuine Parts Company (GPC)
Distributes automotive replacement parts through its 58 NAPA distribution centers and 1,100 company owned stores in the U.S. It also has operations in Canada and Mexico. Its NAPA unit accounts for 50% of sales. Its Motion Industries unit, which accounts for 30% of sales, distributes industrial parts via 315 locations. Genuine's S.P. Richards unit distributes business products from 44 distribution centers, and its EIS unit distributes electronic materials. Genuine recently agreed to acquire 271 NAPA stores in the mid-Atlantic region from a third party (3.2% yield).
Verizon Communications (VZ)
Verizon is the US' second largest telecommunications provider [after AT&T (T)]. Verizon's wireline business provides local telephone, long-distance and Internet access to customers in 24 states and D.C. Verizon Communications owns 55% of Verizon Wireless [U.K. based Vodaphone (VOD) holds the balance], which, with 80 million customers, is U.S.' largest wireless provider (4.6% yield).
Those are my ideas. As always, you should do your own due diligence, The more you know about your stocks, the better your results.