This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cramer's Diversified Dividend Portfolio

Stocks in this article: LLYEDTPGFKMP

In December of 2008, AT&T raised its dividend for the 24th consecutive year, with a new quarterly payout of 41 cents a share, adding up to $1.64 for the full year. AT&T's dividend will eat up 78% of its expected 2009 earnings, which is nowhere near as safe as we would like. But AT&T deserves some leeway here because of its stable business, which also has room for price increases for its services. Even though the earnings don't come to twice the dividend, AT&T does pass the free cash flow test, as it generated 43% more free cash flow than reported net income over the past 4 quarters. It's debt is also rated in the A-range by the major ratings agencies, and it has a terrific CEO in Randall Stephenson.

4. Powershares Financial Preferred Portfolio (PGF) (PGF): This is not a stock, but an exchange-traded fund or ETF that yields roughly 11.6% and follows 30 preferred stocks in the financial industry, allowing you to gain exposure to multiple different companies without concentrating too heavily on any particular one. Preferred stocks are like a hybrid security that's half-bond and half-stock. First, the dividends are fixed, like a bond. And if there's not enough money to pay all of a company's dividends, preferred holders get their money before the common stock dividend can be paid, the same as if the business is liquidated--preferred shareholders come before the common when it comes to receiving any available proceeds from liquidation. In return, you usually give up voting rights and some potential upside if the common stock really takes off--like we saw in the financials after the bottom in early March of 2009.

7 of 9

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs