.floatimg-left-hort { float:left; } .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 12px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 12px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 12px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Dear Mr. Berko:

Dear R.P.:

If you want class, I’ll give you class; but I don’t think class will prove as profitable as you think in 2010. The recession is over, suggesting that the gross domestic product (GDP) has stopped falling, employment may not sink lower, housing prices may have reached bottom, most banks are out of trouble and corporate profits have stabilized.

However, I doubt that the housing market will recover, employment will pick up, the GDP will have a meaningful uptick, housing prices will rebound, corporate profits will continue to be strong or banking profits will be robust.

Frankly, I think it’s a very long, slow ride back to the consumption rates of a few years ago when the Dow Jones industrial average, the GDP and consumption velocity were making new highs. Still, each of the follow issues is rated A-plus-plus for financial strength, pays an attractive dividend and could raise its dividend.

There’s even a modest possibility that this portfolio could grow in value by year’s end. But I’m not making you any promises.

Pepsico (PEP – $61.15) has raised its dividend in each of the last 20 years. The current $1.80 payout yields 2.9 percent, and because 2010 earnings are expected to come in at $4.17 per share compared with 2009’s $3.72, the dividend will probably increase this year to $1.90.

Automatic Data Processing (ADP – $41.18) also has raised its dividend in each of the last 20 years. The current $1.36 dividend yields 3.3 percent, and although 2010 earnings of the nation’s largest payroll and tax-filing processor are expected to be lower by 2 cents per share at $2.37, I think ADP will increase this year’s dividend to $1.40 per share.

Abbott Labs (ABT – $54.44) has increased its dividend in each of the past 20 years. At $1.60, it yields 2.9 percent, and because 2010 earnings are expected to come in at $4.15 per share compared with last year’s $3.65, I’m “posilutely” certain ABT will increase its dividend to at least $1.70.

Colgate Palmolive (CL – $81.05) is a $16 billion company and the nation’s second-largest purveyor of household products, detergents and toiletries. The current $1.76 dividend yields 2.2 percent and has been increased in each of the last 20 years. If earnings improve to $6 per share from last year’s $5.25, I believe CL will raise its dividend to $1.90.

Johnson & Johnson (JNJ – $63.99) is an extraordinary $62 billion health care giant. It pays a $1.96 dividend, has a 20-year unbroken string of increases and currently yields 3.1 percent. If earnings improve to $6.15 per share from last year’s $5.65, I’m certain the board will raise the dividend from $1.96 to at least $2.10.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service