Walt Disney, Eastman Kodak, General Electric, Gillette, IBM and Open Text Corporation

The Investment Planning Committee Highlights: Walt Disney, Eastman Kodak, General Electric, Gillette, IBM and Open Text Corporation

Business Editors


The Investment Planning Committee believes that DRIPs are a great way to open a gusher of profit. Discover five stocks that offer good plans and get a detailed follow-up on a stock that may be worth a risk. Read about Walt Disney (NYSE:DIS), Eastman Kodak (NYSE:EK), General Electric (NYSE:GE), Gillette Company (NYSE:G), International Business Machines (NYSE:IBM), and Open Text Corporation (NASDAQ:OTEX). Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/

Here are the highlights from the Featured Expert column:

The Investment Planning Committee often points out that you should gradually buy stocks in your working years. One of the best ways to do this is with dividend re-investment plans, or DRIPs (where a company will reinvest your dividends into new shares).

When you invest in U.S. companies, you can often buy those first few shares directly from the companies or their transfer agents. You need not buy through a broker. Of the Committee’s 20 U.S. Key stocks, 18 offer dividend reinvestment and cash option plans. Of these 18 companies, 12 will let you buy your initial shares without going through a broker. These 12 include Walt Disney (NYSE:DIS), Eastman Kodak (NYSE:EK), General Electric (NYSE:GE), Gillette Company (NYSE:G), and International Business Machines (NYSE:IBM).

Non-Key Follow Up

Open Text Corporation (NASDAQ:OTEX) has a lot going for it. It’s a buy for long-term investors who can accept higher-than-average risk. The firm has a strong balance sheet. It’s debt-free and has cash of $108 million, or $5.56 a share. Open Text also makes money. It earned record revenues and profit in the third quarter of fiscal 2003. This is the firm’s 12th profitable quarter in a row. Open Text’s record profit is all the more remarkable given low technology spending. This reflects its customer retention rate of 90% for its Livelink software. Also it won new business plus add-ons from many big companies. Open Text is winning new business this quarter too.

Open Text should remain at the forefront of its industry. That’s because it invests a lot in research and development. In the first nine months, for example, the firm spent $20.6 million on R&D, up 14.2% from a year earlier. It also expanded its capabilities and product offering by acquiring other firms.

Learn more about DRIPs and Open Text, along with seven other stocks from the Investment Planning Committee that offer dividend reinvestment and cash option plans, by clicking: http://featuredexpert3bw.zacks.com/

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