Even in a recession, companies need to keep their buildings clean and maintained, creating steady demand for W.W. Grainger, which distributes facilities maintenance products. The company just increased its quarterly dividend by 10%, and Goldman Sachs analyst Terry Darling says Grainger can grow through the downturn by expanding its sales force and taking advantage of smaller competitors that don't have cash or access to credit.
The company has an aggressive share buyback program, and Darling says earnings could grow by over 11% next year.
--K.B.
