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!

7 Buy-Rated Dividend Stocks to Buy Today

NEW YORK (TheStreet) -- Dividends are a critical component of total stock market return, accounting for 43% of the S&P 500's return from 1990 to 2010. Unfortunately, the dividend yield of the S&P 500 has fallen to 1.85% (approaching 120 year lows) -- income investors might find better opportunity in a diverse basket of carefully chosen stocks.

Each of the seven stocks listed below has a higher dividend yield than a S&P 500 index fund, has a buy rating from TheStreet Ratings award-winning stock rating model and will trade ex-dividend tomorrow (this means that you must purchase the stock today to qualify for the next dividend payment).

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

B&G Foods

B&G Foods (BGS) manufactures, sells and distributes a diverse portfolio of branded and shelf-stable food products.

Dividend Yield: 4.05%

4-Year Dividend Compound Annual Growth Rate: 10.12%

Rated "A (Buy)" by TheStreet Ratings: B&G Foods' 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. B&G Foods is extremely liquid. Currently, the Quick Ratio is 2.71 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.42% 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.

Deere

Deere (DE) operates in three major business segments: agriculture and turf, construction and forestry, and financial services.

Dividend Yield: 1.71%

5-Year Dividend CAGR: 8.71%

Rated "B (Buy)" by TheStreet Ratings: Deere's gross profit margin for the second quarter of its fiscal year 2011 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 31.36% from the same quarter last year.

Dow Chemical

Dow Chemical (DOW) is engaged in the manufacture and sale of chemicals, plastic materials, agricultural, advanced materials and other products and services. It is also engaged in the property and casualty insurance and reinsurance business.

Dividend Yield: 1.68%

5-Year Dividend CAGR: (16.74%) Negative

Rated "B- (Buy)" by TheStreet Ratings: Dow Chemical's gross profit margin for the first quarter of its fiscal year 2011 has increased 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. Dow Chemical has average liquidity. Currently, the Quick Ratio is 1.07 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year. During the same period, stockholders' equity ("net worth") has increased by 12.75% 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.

Kraft Foods

Kraft (KFT), through its subsidiaries, manufactures and markets packaged food products including: snacks, beverages, cheese, convenient meals and various packaged grocery products.

Dividend Yield: 3.38%

5-Year Dividend CAGR: 3.86%

Rated "B+ (Buy)" by TheStreet Ratings: Kraft Foods' gross profit margin for the first quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. Kraft Foods has very weak liquidity. Currently, the Quick Ratio is 0.47 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.37% 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.

York Water Company

York Water Company (YORW) works to meet or exceed safe drinking water standards and distribute water.

Dividend Yield: 3.05%

5-Year Dividend CAGR: 2.93%

Rated "A (Buy)" by TheStreet Ratings: York Water'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. York Water has strong liquidity. Currently, the Quick Ratio is 1.63 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.96% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

Molex

Molex (MOLX) manufactures electronic components, including electrical and fiber optic interconnection products and systems, switches and integrated products.

Dividend Yield: 2.68%

5-Year Dividend CAGR: 17.61%

Rated "B+ (Buy)" by TheStreet Ratings: Molex's gross profit margin for the third quarter of its fiscal year 2011 has decreased 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 to the same quarter a year ago. Molex has average liquidity. Currently, the Quick Ratio is 1.41 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.

During the same period, stockholders' equity ("net worth") has increased by 9.04% 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.

Illinois Tool Works

Illinois Tool Works (ITW) is a manufacturer of a range of industrial products and equipment.

Dividend Yield: 2.47%

5-Year Dividend CAGR: 11.63%

Rated "B (Buy)" by TheStreet Ratings: Illinois Tool Works' 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 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. Illinois Tool Works has average liquidity. Currently, the Quick Ratio is 1.25 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 increased by 18.70% 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.

>>To see these stocks in action, visit the 7 Buy-Rated Dividend Stocks portfolio on Stockpickr.

USEFUL TOOLS FOR INCOME INVESTORS:


This article was written by a staff member of TheStreet.

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 16,985.19 +2.60 0.02%
S&P 500 1,975.72 -3.19 -0.16%
NASDAQ 4,446.42 +1.5110 0.03%

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