Newell Rubbermaid Inc. $28 - New York symbol NWL

NEWELL RUBBERMAID INC. $28 (New York symbol NWL; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 279.3 million; Market cap; $7.8 billion; WSSF Rating: Average) makes a wide variety of household goods, including plastic storage containers, tools, window blinds and writing instruments. The company is currently in the middle of a threeyear restructuring aimed at cutting its annual expenses by $150 million. This involves selling less profitable operations, and shifting production overseas. In the three months ended June 30, 2007, Newell’s profits before restructuring costs rose 19.6%, to $0.55 a share (total $154.6 million) from $0.46 a share ($131.6 million) a year earlier. Sales grew 3.7%, to $1.69 billion from $1.63 billion. Newell plans to invest some of the savings in marketing and new product development. These outlays will hurt earnings, but should spur long-term sales growth. The company also continues to restructure and expand its international operations, which currently provide just 30% of its sales. Newell trades at 15.9 times its likely 2007 profit of $1.76 a share. The $0.84 dividend yields 3.0%. Newell Rubbermaid is a buy.

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Blue Chip Stocks

Blue chip stocks are big, well-established, dividend-paying corporations with strong business prospects. These are companies that also have sound management that should be able to make the right moves to keep competing successfully in a changing marketplace.

Dividend Stocks

Dividend stocks make cash payouts that serve as a way for companies to share the wealth they’ve accumulated. These payouts are drawn from earnings and cash flow and paid to the shareholders of the company. Typically, these dividends are paid quarterly, although they may be paid annually or even monthly as well.

Value Stocks

What are value stocks?

One of the sweetest and most profitable pleasures of successful investing is to buy high-quality “value stocks” (or stocks that are reasonably priced, if not cheap, in relation to its sales, earnings or assets), then hold on to them as mainstream investors recognize the value and push up the share price.

Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

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AI Investing

Artificial intelligence (AI) is essentially the merging of today’s big computing with big data. This has resulted in breakthroughs in everything from creating machines to recognize faces with more accuracy than a human, to the development of chatbots able to collect, organize and simplify all the Internet has to say on any topic.

Spinoffs

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A penny stock in general trades for under five dollars a share, and as the name implies, sometimes for pennies. Most of the time they’re young companies, or start-ups in speculative markets like mining or technology.

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