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TheStreet Open House

5 Buy-Rated Dividend Stocks to Buy Today

NEW YORK, N.Y. ( TheStreet) -- In today's low interest rate environment, long-term investors may wish to consider dividend stocks as an alternative to fixed income investments. The five stocks listed below are going ex-dividend tomorrow (this means that you must purchase the stock today to qualify for the next dividend payment) -- each of these stocks also has a yield higher that the S&P 500 dividend yield and has a "buy rating" from TheStreet Ratings award-winning stock rating model.

TheStreet Ratings stock-rating model favors defensive investments with a bias towards conservatively financed companies that have demonstrated a history of favorable shareholder returns.

Chubb

Chubb (CB) is a holding company with subsidiaries mainly engaged in the property and casualty insurance business.

Dividend Yield: 2.5%

5-Year Dividend Compound Annual Growth Rate: 8.16%

Rated "B+ (Buy)" by TheStreet Ratings: Chubb's gross profit margin for the first quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.02% from the same quarter last year.

Heinz

H. J. Heinz (HNZ) manufactures and markets an extensive line of food products throughout the world. Its main products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products.

Dividend Yield: 3.55%

5-Year Dividend CAGR: 5.57%

Rated "A (Buy)" by TheStreet Ratings: Heinz's gross profit margin for the fourth quarter of its fiscal year 2010 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. Heinz has very weak liquidity. Currently, the Quick Ratio is 0.48, which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 64.37% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

Iron Mountain

Iron Mountain (IRM) is a global provider of information protection and storage services.

Dividend Yield: 3.04%

5-Year Dividend CAGR: Dividend first paid in 2010.

Rated "B- (Buy)" by TheStreet Ratings: Iron Mountain's gross profit margin for the first quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared with the same quarter a year ago. Iron Mountain has average liquidity. Currently, the Quick Ratio is 1.03, which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.97% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

Superior Industries

Superior Industries (SUP) is engaged in the design and manufacture of aluminum wheels, for sale to original equipment manufacturers.

Dividend Yield: 3.09%

5-Year Dividend CAGR: Nil

Rated "B (Buy)" by TheStreet Ratings: Superior Industries' gross profit margin for the first quarter of its fiscal year 2011 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. Superior Industries is extremely liquid. Currently, the Quick Ratio is 3.89 which clearly shows the ability to cover any short-term cash needs. SUP managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.58% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

Sempra Energy

Sempra Energy (SRE) is an energy services holding company, which provides electric, natural gas and other energy products and services to its customers.

Dividend Yield: 3.6%

5-Year Dividend CAGR: 5.39%

Rated "B (Buy)" by TheStreet Ratings: Sempra Energy's gross profit margin for the first quarter of its fiscal year 2011 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. Sempra Energy has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.36% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

>>To see these stocks in action, visit the 5 Buy-Rated Dividend Stocks to Buy Today portfolio on Stockpickr.

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This article was written by a staff member of TheStreet.

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