Clarcor Inc. (CLC): It is a diversified marketer and manufacturer of mobile and industrial filtration products and consumer and industrial packaging products.

• It is a dividend achiever has paid growing dividends for last 22 years. Most recent dividend increase of 8.3% was in October 2009.
• The 3Q09 earning per share was $0.42 (vs. $0.50 in 3Q08).
• The key highlight was improving operating profits and net earnings for fiscal year 2009.
• The cash flow improved to $93million for first nine months (from $79million)
• The 2009 earnings is expected to be $1.30 to $1.40.
• Yearly dividend of $0.39/share appears to be well covered with earnings.
• This payout ratio is at 30% and current dividend yield is 1.30%

ConAgra Foods Inc., (CAG): It is one of the largest US packaged food processors with $11.6 billion in revenues.

• It has been paying dividends for more 25 years but not growing dividends. It has cut and/or suspended its dividends in these years. Most recent dividend increase of 5% was in September 2009.
• The 1Q10 earning per share was $0.37 (vs. $0.23 in 1Q09).
• The key aspects were significant increase in earnings and operating profits. It appears this increase is a combination of share buybacks and reduced operating costs.
• The yearly dividend of $0.80/share appears to be covered with expected earnings of $1.70/share for year 2010.
• The payout ratio is approx. 47% and current dividend yield is 3.8%.

At a high level and in the context of stocks screening, CLC and CAG demonstrate ability to cover and sustain their dividends.