#1) Automatic Data Processing
ADP looks especially hideous right now. At 22.8 times forward earnings, it's pretty hard to justify buying new shares of this business. ADP recently lost its AAA credit rating which didn't seem to phase the stock price one bit. I was hoping the credit downgrade might spook investors into selling (so I could pick up some shares). Guess I'll have to keep waiting for an opportunity to add this one. That day may never come...
CL is a fantastic company, and you can expect to pay a premium if you want to own shares of this business. At 20.6 times forward earnings the premium price is getting a bit stretched... even by CL standards. I already own PG & UL and don't have room for this one anyways.
#3) Aqua America
Man, I'd really really like to grab shares of WTR, but at 19.7 times forward earnings, that dream will not become a reality anytime soon. I'm saving a spot in my portfolio for WTR, and if it declines 10-15% I might get interested.
#4) American States Water
This company is slightly cheaper than WTR with a 19.6 forward p/e, but then you have to consider its PEG ratio is an absolutely terrible 20.6. That's outrageously bad. Apparently water utilities will have to be put on hold for a while. Yuck!
A 19.5 forward p/e for SYY? No thanks. The only saving grace here is that it does have a juicy yield of 3.1%, unfortunately that's really low by Sysco standards.
#6) Air Products & Chemicals (APD) 19.4 times forward earnings
#7) Walgreens (WAG) 19.1 times forward earnings. Does have a PEG ratio of 1.5 to make up for it.
#8) Compass Minerals (CMP) 18.7 times forward earnings
#9) Dominion Resources (D) 18.7 times forward earnings
#10) Coca-Cola (KO) 18.3 times forward earnings
I didn't include REITS or MLPs in this list.