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

5 Rising Dividend Payers for a Bullish but Skittish Stock Market

NEW YORK ( TheStreet) -- It may not be all that different from previous media-overhyped crises, but we function in a weird stock market.

The macro sky keeps falling, yet the other shoe never seems to drop. Amidst this perpetual anxiety the media tells us we're supposed to feel -- and some do feel -- the S&P 500 is up six weeks in a row to multi-year highs and the VIX is at its lowest level since 2007.

Even more exciting, the other so-called bubble -- strength in dividend-paying stocks -- continues to expand with no signs of popping.

Consider five of the top-performing dividend payers in one of the market's most dynamic spaces: media and telecommunications stocks BCE Inc. (BCE - Get Report), Disney (DIS - Get Report), Time Warner (TWX - Get Report), Verizon (VZ - Get Report) and Viacom (VIAB - Get Report).

BCE Chart BCE data by YCharts

Over the last three months, TWX is up nearly 25%. All of the other stocks, save VZ, have increased by double digits in the last 90 days.

The question then is do you consider this the top for these names, either because of coming macro doom or stock-specific concerns, and get out? Or do you continue buying to further develop the core of your growth and income portfolio? As a not-yet-40-year-old married man with a child whose portfolio is 60% cash and 40% stock, both make sense.

I was long VZ early on in its run and exited prior to the company's most recent earnings report. Because I don't see a whole ton of upside outside of rewards associated with increased smartphone adoption, I don't plan on getting back into the stock.

At the same time, I certainly would not take issue with an investor who buys a little VZ each month, reinvests the dividend and consistently writes covered calls against the stock as part of a larger, long-term plan.

That's a solid approach as well for the other four stocks, each of which has considerable growth prospects.

I expect consolidation in the space. Because Viacom doesn't have the content every media conglomerate needs going forward in an on-demand, mobile and streaming society -- live sports programming -- I expect it to actively seek M&A opportunities. In fact, Viacom would look incredible as part of larger Disney or Time Warner. There might not be two better-positioned media outfits in existence.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
VIAB $67.85 0.89%
BCE $42.73 -0.05%
DIS $105.48 0.23%
TWX $85.11 0.45%
VZ $48.56 0.29%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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