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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

2 Dividend Stocks to Buy, 1 to Avoid

Stocks in this article: TGT WMT FTR

NEW YORK ( TheStreet) -- It makes sense for most long-term investors to put at least some of their loot into speculative positions. I invest anywhere from 10% to 20% of my portfolio in ultraspeculative stocks such as Pandora (P) and Wendy's (WEN) and growth plays that don't pay dividends, such as Madison Square Garden (MSG).

The core of my portfolio, however, sits firmly in growth companies paying generally stable and increasing dividends.

In this article, I discuss two dividend stocks to consider buying and one to avoid.

Target (TGT) and Wal-Mart Stores (WMT)

Make no mistake about it: I am bearish on roughly 95% of brick-and-mortar retailers. Unless it's an Apple (AAPL) store or something sharp, snazzy and exclusive like Lululemon (LULU), I want no part of it.

Exceptions, however, do exist.

Although I do not own either yet, I have put Target and Wal-Mart on my radar.

The good news at Wal-Mart? Growth appears to have returned. I want to see how this past quarter worked out. (The company reports May 17.) But it seems like a reversal is underway, driven by Sam's Club revenue. Sales are up year over year across the board.

A need will always exist for Wal-mart and Sam's Club, particularly in rural and suburban areas and among older people who are not prepared to allow Amazon.com (AMZN) to take over all aspects of their lives. If you do not know what a tablet is -- beyond your blood pressure medication -- chances are you will not order toilet paper on a Kindle Fire anytime soon.

1 of 2

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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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