Blue Chip Dividend Investing Without A Lid

I like to engage in what I call "investing without a lid on" to describe circumstances where a company's current growth prospects relative to current valuation gives you a healthy chance to benefit from total returns in excess of 10% in the next decade. I'll give a few examples.

You might want to take a look at Becton Dickinson (BDX). The company has grown earnings by 12.5% annually over the past decade, and grown dividends by 15.5% annually over that time frame. The company has returns on shareholder equity of 23.5%, only has to pay out a third of its profits in the form of dividends, and has reduced the share count from 243 million in 2008 to an estimated 193 million by 2013's year end. I think the current 7% sales growth figures represent untapped energy given the array of problems in Japan resulting from the loss of funding in response to austerity measures. If you could buy in the low $90s, you're putting yourself in good shape to cross the 10% annual mark.

Source: Seeking Alpha

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