According to Johanna Bennett of Barrons, WITH STOCK VALUES PLUMMETING and bonds delivering measly returns, it’s a good time to start sniffing out shares with juicy dividends that are for keeps.

Track Johanna’s picks at:

http://trackthepros.com/stocks/category/632

To be sure, dividends generated by the Standard & Poor’s 500 Index are growing drastically slower in 2008 than experts forecast earlier this year.

And though they have fared better than the broader stock market so far this year, total returns from dividend-paying stocks tracked by Standard & Poor’s have fallen almost 15%.  BUT, the best opportunities are in companies that have strong dividends and histories increasing the dividend with balance sheets and expected earnings that will allow continued payments (and increases):

Dividends Can Yield

Some companies with the ability to increase dividends

Company Ticker Mkt Cap Yield EPS ...

Barron’s analyst Johanna Bennett recommended Perrigo.

Track her picks at:

http://trackthepros.com/

a. IN THE PAST, CASH-STRAPPED CONSUMERS who gladly substituted brand-name household products for cheaper store brands tended to draw the line at their medicine chests. Not anymore.Increasingly, these consumers have been replacing Tylenol, NyQuil and other leading over-the-counter medications with less expensive store-brand alternatives

b. That’s good news for Perrigo, the world’s largest maker of store-brand nonprescription medicines. The company is well positioned to benefit from a slew of new products set to keep pace with rising demand.

c. Profits are set to climb. So despite trading at a price-to-earnings multiple that exceeds that of the broader market, Perrigo’s share price could set a new record in the next 12 months.

d. They dominate the store-brand market, and are the best positioned to take advantage of growing opportunities. Profits, meanwhile, are visible and growing strong. They

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Johanna Bennett, Barron’s analyst, recommended McKesson- track her picks at:

http://trackthepros.com/categories.php?category_id=632

a. WHILE BIG PHARMACEUTICAL companies face setbacks launching new drugs, McKesson seems to be sitting pretty cheap considering how fast the nation’s largest drug wholesaler generates healthy profit growth these days.

b. At current multiples, investors can cash in as McKesson outgrows its biggest rivals and profits from the growing demand for generic drugs.

c. Last month, McKesson reported financial results that beat expectations, buoyed by share repurchases, higher drug revenues and recent acquisitions of smaller drug wholesalers that helped boost earnings. The company also hiked earnings estimates for the fiscal year scheduled to end on March 31, 2009 to between $4 a share and $4.15 a share.

e. Company acts as a middleman for the nation’s drug industry, distributing prescription medications to hospitals and retailers like CVS and Wal-Mart.

f. A division that

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