ScreenShot: Consistent Dividend Growth

Pharmaceutical stocks such as Eli Lilly (LLY - commentary - Cramer's Take) and Merck (MRK - commentary - Cramer's Take) make the list above, but that's only because of strong dividend growth in the past. The branded drug industry appears to have hit a plateau, and although the dividends appear safe, they are unlikely to grow much in the coming years. Instead, you can look at these stocks as direct alternatives to pure fixed-income yields -- a nice payout but not much growth.

It's rare for a retailer to sport a high dividend yield, as most retailers prefer to use their cash to expand their store base. But the market selloff has pushed these stocks down so far that their once-paltry yields are now respectable. That's the case with Limited Brands (LTD - commentary - Cramer's Take), whose stock plunge to a seven-year low has pushed the dividend yield toward the 5% mark.

In response to the slowing economy, this retailer has chosen to cut expansion plans rather than the dividend. Limited Brands will trim capital expenditures by 40% in 2009, saving $230 million in the process. The company has also become quite astute at managing inventories. As a percentage of sales, they have fallen for 15 straight months (adjusted for seasonality).

As a result, operating cash flow appears likely to stay above the $800 million mark, as was generated in fiscal (January) 2008. In that context, the $200 million in annual dividend payments does not appear especially onerous.

This list is a good place to begin your own research if you're looking for income from your holdings. Dividends are great; consistent, safe dividends are even better.

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David Sterman has been an equity analyst and financial journalist for 15 years, most recently serving as Director of Research at Jesup & Lamont Securities.