Increased dividend to $0.0625 from $0.055 for shareholders of record on November 5.

Buy -- Price 34.88 on Oct. 6
by Collins Stewart

Reiterating Buy rating and 40 target ... following the company's approval for a store-brand version of Schering Plough's (SGP) Miralax [an anti-constipation treatment]. The approval is earlier than we had expected. Therefore, even though it is already incorporated in the company's F2010 financial guidance, there could be some upside to our forecasts. We estimate that store-brand Miralax will contribute at least 5 cents to our earnings estimate of $2.05 in F2010. To be conservative, we are making no changes to our guidance yet. Market cap: $3 billion.

Pile Into Perrigo: David Peltier, portfolio manager for TheStreet.com's Dividend Stock Advisor newsletter, says generic drugmaker and consumer staples manufacturer Perrigo is ready for a rebound. Here's why.

Click here to watch the video.

From a recent Mad Money show:"I was surprised by the pullback, but they had a bad quarter. They should be doing well, but they aren't, so I'm a seller."

10%

seems to be steady

PE of 23, a PEG of 0.87, and it pays a yield of 0.6%.

Just an awesome display. In fact, the only real stinker today -- besides Fannie Mae (FNM), which no one seems to care about -- was Perrigo (PRGO), and that's just because people had bid it up as a substitution play, a trade-down play, because it makes generic products.

Good long term investment

Generic drug and health care products maker Perrigo Co. said ts board authorized the repurchase of $150 million in common stock and declared a regular quarterly dividend of 5 cents per share.

The company also announced that second-quarter earnings surged 63 percent on double-digit revenue growth, beating Wall Street estimates.

The stock has a forward PE of 19.