One thing that all the great management and product ideas in the world can’t help is currency strength, and for the past year the dollar has marched steadily higher against other foreign currencies. That march has proved to be a big drag on the earnings of some of the top companies in the S&P 500. Fortunately for many, the recent dollar weakness has helped to alleviate some of the headwinds, and while we won’t see the euro at $1.30 to the dollar again any time soon, the current level is helping.

We screened the Merrill Lynch research universe for big multinationals that the firm has rated at Buy and that also could be benefactors in the recent weakness. Obviously energy and materials stocks are doing better, but we looked for blue chip multinationals that pay solid dividends.

Ford

This company posted record North American results last year, and Wall Street wasn’t that impressed as huge profits didn’t meet estimates. Ford Motor Co. (NYSE: F) has reshaped the company’s product line in recent years, and sales have been outstanding. With sales booming not only in the United States but in China, and six new models being introduced in Russia, the company is expanding market share while maintaining a competitive pricing structure. 2016 could be another banner year for the gigantic automobile and truck manufacturer.

The iconic F-150 truck remains the top-selling truck in America, and it has been the top-selling vehicle for the past 34 years, despite strong challenges from the competition. While consumers have bought vehicles in a big way in recent years, replacement continues as low interest rates, dealer incentives and increasing take-home pay make a vehicle purchase an easy choice.

The company announced a very conservative 2016 outlook by region and also a supplemental $1 billion dividend for shareholders back in January. Some on Wall Street may view the North American estimates as light, but the stock has been mauled so bad, any disappointment looks priced in. With over 40% of sales overseas, the lion’s share in Canada, the weaker dollar should be a big help.

Ford investors receive a very rich 4.4% dividend. The Merrill Lynch price target for the stock is $16. The Thomson/First Call consensus target is $15.69. Shares closed most recently at $13.66.

General Electric

This iconic industrial was on a strong roll to end last year, but it sold off last month and is giving investors a nice entry point. General Electric Co. (NYSE: GE) is a highly diversified, global industrial corporation. The company’s products and services include power generation equipment, aircraft engines, locomotives, medical equipment, appliances, commercial leasing and personal finance. The Merrill Lynch analysts feel that this American giant will be a large player in the efficient energy field.

The company is in the middle of scaling back many of its operations and returning capital to shareholders. GE announced a restructuring plan last year that includes buying back up to $50 billion of its shares, selling about $30 billion in real estate assets over the next two years and divesting more GE Capital operations. The continued restructuring and sale of the appliance division provides some cushion to earnings estimates

The company posted solid fourth-quarter numbers that were somewhat hampered by slower organic growth. GE does an estimated 52.9% of its total sales are overseas, so the weaker dollar surely could help.

GE investors receive a 2.96% dividend. Merrill Lynch has a $33 price target, and the consensus target is $32.69. Shares closed Monday at $31.09.
Intel

This top chip stock has traded sideways all last year and actually closed down from where it started 2015, but with $21 billion of cash on the books the dividend looks very safe. Intel Corp. (NASDAQ: INTC) designs, manufactures, and sells integrated digital technology platforms worldwide.

The company’s platforms are used in various computing applications, including notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

Intel’s NAND flash memory business has a strong focus on enterprise opportunities. Many on Wall Street think that the company’s new chip, which is a collaboration with Micron Technology called the 3D XPoint, could be primarily In-Memory compute in servers, and its launch should coincide with Intel’s Purley platform server launch in 2016.

Intel does a stunning 82.4% of its sales overseas, the lion’s share of it in Asia, where the chips that it produces are used in personal computers, tablets and other personal electronic devices.

Intel investors receive a 3.22% dividend. The Merrill Lynch price target is in line with the consensus price target of $36.05. Shares closed Monday at $32.34.

Procter & Gamble

This stock is still down since this time last year, partly because it has a very large 65% of sales directed to foreign customers, which should improve as the dollar’s run slows down. Procter & Gamble Co. (NYSE: PG) is a solid consumer staples stock especially for conservative investors to consider. The company sells lots of run-of-the-mill household items that are essential for everyday life, but it is not content to stand on its laurels.

The company actually is innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends. While currency headwinds have weighed on recent earnings and projections, the dollar may be topping out and that would bode well for the future.

The company posted very solid fourth-quarter results in January, and despite earnings expectations that have been lowered somewhat, Merrill Lynch feels comfortable that the stock can continue the current positive momentum.

Shareholders receive a 3.18% dividend. The $89 Merrill Lynch price target is higher than the consensus estimate of $83.48. The stock closed Monday at $83.32.

Granted the dollar has been volatile, and the strength we have seen for the past year could return, but with the Federal Reserve rate hikes on hold for now, and many of the speculators closing long dollar trades, there could be some help on the way for these top companies.

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