PepsiCo (NYSE: PEP  )
This great company could be a good addition to any portfolio. Of course, it has the whole battle-for-Olympus thing going on with Coca-Cola (NYSE: KO  ) for dominance in the fizzy beverage world, but it also has a giant snack-food arm that has provided significant growth. However, the company's quality hasn't escaped many investors, and the stock's current valuation suggests pretty middle-of-the-road returns ahead. For investors playing defense, that could be just fine, but it's not enough to make PepsiCo my next buy.

Home Depot (NYSE: HD  )
It's easy to be a Home Depot hater. Maybe a little too easy. The economy is sluggish, the housing market is still pretty much in shambles, and chief competitor Lowe's (NYSE: LOW  ) has made up significant ground on it in recent years. However, the company's CEO Frank Blake has been at the helm for a little more than four years now, and I think he's moving the company in a good direction. And with few investors particularly bullish on a home-improvement retailer during a prolonged housing slump, the stock also has a pretty attractive valuation. That said, retailing is a tough business, and I'm not sure I'm sold on the durability of Home Depot's competitive advantage.

Exelon (NYSE: EXC  )
There's a lot to like about Exelon, and high on the list is the stock's 5% dividend yield. The power company also has a very significant amount of nuclear generation assets. Though nuclear took a hit on the PR front this year after the disaster in Japan, most reasonable people still consider it a very viable solution for lower-emission energy generation. But as I noted in my write-up, I'm not crazy about the offer that the company made for Constellation Energy, so that knocked the stock down on my list.

Aflac (NYSE: AFL  )
It was very tough for me to not put Aflac in the top spot. I think there's the potential for very significant returns from the stock going forward. I like the dividend, I like the management, I like the business, and even without Gilbert Gottfried (or maybe especially without Gottfried?), I like the duck. Above all, I like the future potential. There are some big question marks for the health care systems in both the U.S. and Japan, which could mean more business for a supplemental insurance provider like Aflac. So why didn't it get the top spot? Because I liked another stock just a bit more.

ArcelorMittal (NYSE: MT  )
How did ArcelorMittal make it all the way to the top of my list? In four simple words: It's ... so ... darn ... cheap. As I noted last month, its price-to-earnings ratio based on average 10-year earnings -- a measure that value investor Ben Graham was a fan of -- was a mere 7.3. A commenter on one of my articles also pointed out that the stock trades at just a hair above half of the company's reported book value. But it's not just a "this is really cheap" thesis. This is also a really great company and a global leader in the steel business. Better still, it was built, is run, and is 41% owned by Lakshmi Mittal, a fellow who I think is a very savvy steel man (not to be confused with Iron Man). Finally, I should also point out that my personal portfolio is light on materials companies, so ArcelorMittal also got a boost because it would increase my portfolio's diversification.

Top 100 Dividend Stocks

Stocks fell sharply Wednesday, as a handful of bleak profit outlooks and more evidence of escalating unemployment served as stark reminders that the economy remains in rough shape. The Dow Jones industrials dropped more than 180 points.

Underscoring investors' growing fears that 2009 is shaping up to be a difficult year for many sectors, Time Warner and Intel on Wednesday issued disappointing guidance.

Time Warner Inc. said it expects to record a fourth-quarter $25 billion impairment charge for its cable, publishing and AOL units that will lead to an operating loss for the period and a loss for the full year. It had expected a profit between $1.04 and $1.07 per share for the year.

Meanwhile, computer chip maker Intel Corp. said it expects fourth-quarter revenue to drop 23 percent, below prior estimates, due to weak demand and inventory reductions by its computer maker customers.

Time Warner shares shed 97 cents, or 8.8 percent, to $10.01. Intel shares plunged nearly 6 percent, or 88 cents to $14.49.

Aluminum producer Alcoa Inc.'s decision to slash jobs further jolted investors.

Alcoa said late Tuesday it is reducing its global work force by about 13,500, or 13 percent, by the end of the year and lowering total output by more than 18 percent annually. Shares of Pittsburgh-based Alcoa tumbled 70 cents, or 5.8 percent, to $11.42.

The announcement comes ahead of the Labor Department's report Friday on the job market - a closely watched barometer of the economy's health. The market got a disappointing harbinger Wednesday in the form of the ADP National Employment Report, an unofficial gauge that the market has been increasingly monitoring as U.S. job losses mount. The report said private sector employment fell by 693,000 in December, worse than expected.

When people lose their jobs, they tend to spend less and fall behind on their debt payments. Investors fear that further declines in consumer spending will prolong the recession.

"People are concerned with the employment report coming out on Friday," said Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. "The market has shrugged off some bad news recently, and it's starting to get to the point where it can't do that anymore."

The Dow has rallied about 20 percent since its multiyear lows in late November 2008, and the Standard & Poor's 500 index has surged nearly 25 percent.

"We've had a big move," Fullman said. "What we're looking at now is just people getting a little cautious here."

In late morning trading, the Dow dropped 186.46, or 2.07 percent, to 8,828.64. The Standard & Poor's 500 index fell 21.57, or 2.31 percent, to 913.13, while the Nasdaq composite index fell 41.70, or 2.52 percent, to 1,610.68.

The Russell 2000 index of smaller companies was down 14.98, or 2.91 percent, to 499.73.

Declining issues outnumbered advancers by about 6 to 1 on the New York Stock Exchange, where volume came to 297.50 million shares.

On Tuesday, Wall Street overcame gloomy economic readings to finish with a moderate advance. The market's economic worries had been calmed a bit in recent days by President-elect Barack Obama's proposal to slash taxes and help businesses. The stimulus package could cost as much as $775 billion, though, and Obama said Tuesday the nation could face trillion-dollar deficits "for years to come."

Bond prices rose on Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.46 percent from 2.47 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, edged lower to 0.11 percent from 0.14 percent.

The Treasury plans to auction a record $30 billion in three-year notes on Wednesday.

The dollar fell against other major currencies. Gold prices also fell.

Crude oil prices slipped $2.46 to $46.12 a barrel on the New York Mercantile Exchange.

In Asian trading, Japan's Nikkei stock average rose 1.74 percent, and Hong Kong's Hang Seng index fell 3.37 percent. In afternoon trading in Europe, Britain's FTSE 100 fell 2.31 percent, Germany's DAX index fell 1.37 percent, and France's CAC-40 fell 1.14 percent.

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Wall Street retreated Monday on concerns that Israel's attack on Gaza might disrupt oil production and shipments from the Middle East, driving oil prices higher.

Investors remained cautious in a holiday-shortened week, unwilling to make many big bets in the final three days of trading for 2008. Israel's escalating attacks against Gaza's Hamas rulers made traders more hesitant to buy.

The tensions pushed oil prices above $40 a barrel during the session, though crude was up just 37 cents at $38.03 a barrel on the New York Mercantile Exchange at midday. Oil has fallen more than $100 from its peak of $147.27 a barrel on July 11 as a slowing economy curbed demand.

Todd Leone, managing director of equity trading at Cowen & Co., said volume is extremely light and that is contributing to the market's swings. Low volume tends to skew price movements.

"What's going on in Israel didn't read well over the weekend," Leone said. "Beyond that, it is an incredibly quiet session. It's really not taking much to move the markets."

Investors also digested a potential blow to dealmaking on Wall Street. On Sunday, Kuwait's government canceled its $17.4 billion K-Dow Petrochemicals joint venture with Dow Chemical Co., saying it was "very risky" because of the global financial crisis and low oil prices. The joint venture was set to begin Thursday.

Rohm & Haas Co. maintains that its proposed $15.3 billion takeover by Dow Chemical won't be affected by Dow's substantial loss of income from the venture. But investors punished shares, driving them down $10.76, or 17 percent, to $10.76. Dow Chemical shares lost $3.89, or 21 percent, to $15.03.

In early afternoon trading, the Dow Jones industrial average fell 121.55, or 1.43 percent, to 8,394.00.

Broader indexes also declined. The Standard & Poor's 500 index fell 14.21, or 1.63 percent, to 858.59; the Nasdaq composite index fell 34.20, or 2.23 percent, to 1,496.04.

Declining issues were ahead of advancers by nearly 2 to 1 on the New York Stock Exchange, where volume came to 353.1 million shares.

Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.06 percent from 2.14 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.02 percent from 0.01 percent late Friday.

The dollar was lower against other major currencies, while gold prices edged higher.

Wall Street has largely written off the final three trading days of 2008, the worst year since Herbert Hoover was president. The Dow has fallen 36.2 percent, the biggest drop since 1931 when the Great Depression sent stocks reeling 40.6 percent. And the Standard & Poor's 500 index is set to record the biggest drop since its creation in 1957. The index of America's biggest companies is down 40.9 percent for the year.

Dave Rovelli, managing director of trading at brokerage Canaccord Adams, said investors will be waiting to make big moves until after the Jan. 20 inauguration of President-elect Barack Obama. Wall Street is eager for details on his proposed stimulus package for the economy.

"No one is going to do anything until the New Year," he said.

However, if companies release earnings warnings early in January, or if the first wave of fourth-quarter reports are disappointing, the market could see a return of heavy selling. Investors will be focusing on any word from companies deemed critical to the economy, especially from the beleaguered financial and retail sectors.

This week, investors will also be looking for insight into how retailers fared after the weak Christmas selling season. Stores have slashed prices even further to entice post-holiday shoppers but with many consumers nervous about the economy they're reluctant to open their wallets. That's a troubling prospect for investors, since consumer spending accounts for more than two-thirds of U.S. economic activity.

The Russell 2000 index of smaller companies fell 14.35, or 3.01 percent, to 462.42.

Overseas, Japan's Nikkei stock average rose 0.09 percent. In afternoon trading, Britain's FTSE 100 rose 2.44 percent, Germany's DAX index rose 1.63 percent, and France's CAC-40 rose 0.47 percent.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

The Dow rose by as much as 182 points in the early going, turned lower at midday, recovered in the afternoon but then lost ground again in the last hour of trading.

Investors are relieved that the White House's efforts have staved off a bankruptcy that could have sent a blow to the economy, but they're worried that the conditions of the financing might be difficult for GM and Chrysler to meet.

At the close, the Dow is down about 25 points to the 8,579 level. The broader Standard & Poor's 500 index and Nasdaq composite index are up less than 1 percent.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed

Jobs Drop, Stocks Pop

November's brutal decline in U.S. payrolls shook investors at the open, but the day ended with a pre-holiday party.

Wall Street seemed to want to rally on Friday, and after a rocky start it managed to coast into the weekend. New York's exchanges were jittery at the open, but a midday turnaround erased losses and set the stage for investors to push higher in the final hour of trading.

The updraft came despite some pretty grim news. Before trading began, the U.S. Labor Department said nonfarm payrolls shed 533,000 jobs in November, the steepest decline in 34 years, and unemployment climbed to 6.7%, but any negative reaction may have been built into Thursday's final-hour sell-off. By day's end, the major averages locked in comfortable gains, with the Dow Jones industrial average recovering from an earlier fall of 257 points. (See "U.S. Layoffs Surge In November.")

At the closing bell the Dow was up 259 points, or 3.1%, to 8,635; the S&P 500 gained 31 points, or 3.7%, to 876; and the Nasdaq added 64 points, or 4.4%, to 1,509. With the gains, the Dow cut its loss for the week to 2.2%, and is now down 34.9% on the year. The S&P fell 2.2% over the past five sessions, and is down 40.3% on the year, while the Nasdaq had a 1.8% weekly drop, pushing the index to a 43.1% 2008 loss..

By the end of the session only a handful of Dow components were still in the red. General Motors (nyse: GM - news - people ) posted a loss, as Chief Executive Rick Wagoner joined Alan Mulally of Ford Motor (nyse: F - news - people ) and Robert Nardelli of Chrysler in Washington to continue their push for a $34.0 billion loan package for Detroit's auto industry.

GM announced it will lay off 2,000 workers and cut shifts at several plants in the first quarter of 2009, while Chrysler confirmed it had retained bankruptcy firm Jones-Day to review the company's options. Shares of GM were down 2.2%; while Ford was up 0.4%. Chrysler is privately held.

Financial stocks were among the day's winners and none more so than the Hartford Financial Services Group (nyse: HIG - news - people ). The diversified financial firm halved its 2008 earnings guidance in October, but bumped that forecast by 40 cents, to between $4.70 and $4.90 a share, on Friday. Investors cheered the more upbeat outlook, shooting shares 106.8% higher.

Bond traders were on a seesaw as the stock market reversed, and yields on Treasury securities crept higher in afternoon trading. After falling early in the session the two-year note yield was up to 0.94%, from 0.85% Thursday, while the 10-year note returned 2.67%, from 2.57%.

Investors uneasy about the holiday shopping season gave back some of Wall Street's recent gains Monday, sending the Dow Jones industrial average down more than 360 points.

While initial reports about the start of holiday shopping this weekend suggested sales were better than some retailers and analysts expected, Americans are clearly extremely cautious. That has Wall Street concerned about the impact of a continuing drop in consumer spending on the economy.

According to preliminary figures released by RCT ShopperTrak, a research firm that tracks total retail sales at more than 50,000 outlets, sales rose 3 percent to $10.6 billion on Black Friday - the day after Thanksgiving that is traditionally one of the biggest shopping days of the year. But some analysts are concerned that Black Friday's results aren't indicative of the rest of the weekend.

"After a slow start to November, we believe strength on Black Friday was not enough to save the month," said John Morris, an analyst at Wachovia Capital Markets. "The strength did not carry through the remainder of the weekend, as business fell off sharply on Saturday, according to our field team."

RCT ShopperTrak is expected to release data for the combined Friday and Saturday period on Monday.

Wall Street is concerned that consumers, by curtailing their spending further, won't be able to help lift the economy from its slump.

Meanwhile, a pair of downbeat economic reports did little to alleviate investors' concerns. The Institute for Supply Management, a trade group of purchasing executives, said its index of manufacturing activity fell to a 26-year low in November. At the same time, the Commerce Department said construction spending fell by a larger-than-expected amount in October.

Both the housing and manufacturing sectors have been suffering for some time, so the reports were ultimately unsurprising. Still, they served as further evidence that the economy remains under pressure.

Some stock selling was to be expected Monday considering the magnitude of last week's advance, when stocks posted some of their steepest gains in decades. The Dow has gained 16.9 percent and the S&P 500 index 19.1 percent since a rally that began Nov. 21; it was the first five-day string of gains for both the Dow and the S&P 500 since July 2007.

In midmorning trading, the Dow Jones industrial average fell 365.66, or 4.14 percent, to 8,463.38. Standard & Poor's 500 index dropped 42.36, or 4.73 percent, to 853.88, while the Nasdaq composite index fell 69.64, or 4.54 percent, to 1,465.93.

Sagging corporate profits weighed on investor confidence today, sending stocks down.