Sherwin Williams is the third largest coatings company in the world and by far the largest in the U.S. This well-run company has an impressive track record for financial strength, return on capital, and return on equity.

Analysts generally stress four key reasons this company should do well in a strong economy:

1. Volume of product sold will increase dramatically with the stabilization of the housing and commercial real estate market.

2. As the economy improves there will be more utilization of professional contractors, which helps margins.

3. Cost controls have made the company capable of strong profits from an increasing revenue flow.

4. The balance sheet is strong and the company will make attractive acquisitions.

The share price of $59 per share with a 2.5% dividend makes the stock an attractive total return for conservative multi-year investors. The dividend has been increased every year since 1979.

Preston F. Sanders is a Chartered Financial Consultant and Registered Investment Advisor. He lives in Washington, Georgia, and can be reached at prestonsanders@bellsouth.net.

NOTE: Any investment can lose value. Don’t buy any stock without a careful evaluation of it’s appropriateness for your situation. See your financial/investment advisor.