Benzinga’s Top Stocks Picks of 2010 (NVS, CAT, SMBL)

Novartis (NYSE: NVS) has a high payout ratio of 71%. The company’s stock has risen by 9.81% in the past 52 weeks, as compared to a rise in the S&P500 of 24.71%. Deutsche Securities initiated coverage of NVS with a “buy” rating. NVS has announced the acquisition of the worldwide rights to an experimental heart drug for up to $620 million as well as privately held US biopharmaceutical company Corthera for $120 million.

Caterpillar (NYSE: CAT) has a high payout ratio of 86%. RBC Capital Markets initiated coverage of CAT with an “outperform” rating. The company is now focusing on sustained organic growth. CAT manufactures and sells construction and mining equipment, diesel and natural gas engines and industrial gas turbines and is poised to benefit from any recovery in the global economy.

Shares of Smart Balance Inc (NASDAQ: SMBL) have declined by 7.94%, as compared to a rise in the S&P500 of 24.71%. The company’s category market share has risen for 31 consecutive quarters. SMBL has announced a two-year stock repurchase program of up to $25 million. The buyback is scheduled to commence in 2010.