"According to the United States Council for International Business US multinationals contribute greatly to the domestic economy and I fervently agree. I recently interviewed the CEO of H&M Industries LLC of San Antonio, Texas, Robert Hight, regarding his company’s current business. H&M supplies tape and other maintenance, repair, and operations [MRO] products to several foreign subsidiaries of major US multinational corporations which include; Ford (F), Alcoa (AA), Baxter (BAX), General Electric (GE), Johnson & Johnson (JNJ), and Intel (INTC). Mr. Hight stated:
Business has definitely picked up. We are experiencing strong organic growth supplying the foreign operations of these companies. We’ve also seen an uptick in new accounts and orders.
With the prospects of a domestic slowdown looming, these multinationals are must haves for your portfolio prior to earnings. These companies' bottom lines are underpinned by strong emerging markets on the cusp of a multiyear secular growth curve.
The following is a short excerpt of a study performed regarding US multinational’s contribution to the domestic economy followed by a brief review of each company highlighted in this article.
U.S. multinational companies strengthen the American economy through a combination of their domestic activity and their international engagement. Strong U.S. multinational companies that are able to compete effectively in foreign markets will be better positioned to help lead America out of recession. The ability of U.S. multinational companies to stem job losses in the United States and eventually return to hiring more American workers depends on the health, vitality, and competitiveness of their worldwide operations. The strength of the American economy is driven by the productivity and competitiveness of the companies operating in America. Innovative and efficient companies in the United States that profitably create goods and services, in full partnership with their workers and their broader communities, are the foundation of a globally competitive U.S. economy that can deliver productivity growth and rising standards of living. U.S. multinational companies enhance the American economy by their capital investment, their research and development, and by supporting good-paying American jobs."
[In the meantime, the Family Fudd gets up and attempts to undermine the US economy every single day...]
"Intel Corporation (INTC) engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Intel Corporation was founded in 1968 and is based in Santa Clara, California.
Intel Corporation recently announced its board of directors has approved a 16 percent increase in the quarterly cash dividend to 21 cents per share (84 cents per share on an annual basis), beginning with the dividend that will be declared in the third quarter of 2011. The announcement is the second dividend increase in the past 6 months. Intel previously raised the dividend 15 percent in November 2010. Intel's dividend payout has steadily increased at a 33 percent compound annual growth rate [CAGR] since 2003, compared to the Standard & Poor (S&P) 500 growth rate of 6 percent over the same period.
The company is trading significantly below analysts' estimates. INTC has a median price target of $26 by 37 brokers and a high target of $31.50."