This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's Diversified Dividend Portfolio

Stocks in this article: LLY ED T PGF KMP

This ETF could come in handy, as banks will have to pay high preferred yields to survive in this difficult environment in order to raise capital. The underlying index that this ETF tracks is a market-capitalization weighted portfolio from Wachovia, now a subsidiary of Wells Fargo (WFC), that is subject to their own selection methodology. It does include some international exposure.

The ETF has paid a monthly dividend since inception in 2006, ranging from 10-12 cents of late. Based on the most recent payout of 11.404 cents, the fund yields 11.6%. That's about 4 times the average yield of the benchmark S&P 500. I am including this ETF because I don't want to single out any particular bank preferred for fear that the bank might stumble, but taken collectively the yield here is simply too juicy to ignore, now that it seems very unlikely that the government would nationalize the banks.

5. Kinder Morgan Energy Partners (KMP)(KMP): This company is what's called a master limited partnership, an MLP, and MLPs like this one are often referred to as energy trusts. These MLPs pay no corporate taxes, and pass almost all of their earnings on to shareholders in the form of a distribution, which is very similar to a dividend. KMP yields about 10%, although with this kind of company the yield tends to be volatile as the distribution changes every quarter depending on how much money the company makes. The company is a pipeline operator with 26,000 miles of lines and about 170 terminals. As opposed to other companies that bring oil and natural gas out of the ground or refine it into other products, Kinder is more like a toll collector that earns money by storing and transmitting the commodities from one place to another. The tolls never stop coming as the customers rely on KMP's pipes for almost a ton of their natural gas use.

8 of 9

Select the service that is right for you!

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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