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!

Six Bullish Stocks Will Pay You High Dividends

Stocks in this article: GE JPM LLY BMY WAG GIS

NEW YORK ( TheStreet) -- I like dividend stocks because it's the one way to know for sure how hard the CEO is working for you. Stocks that don't pay a dividend let management off too easy.

Sure, start-ups and growth companies can make a strong case for not paying a dividend now, but after 10 years if a company isn't paying or growing quickly, something may be wrong. History is clearly on my side when comparing dividend-paying companies and nonpayers.

Stocks that pay a dividend on average perform much better than stocks that don't. Even after accounting for micro-caps and pinksheet stocks, dividends are your easiest path toward a stable and appreciating portfolio.

Finding the right ones is no easy task. You want as big of a yield as you can find, but if the company cuts the dividend, not only do you own a lower yielding stock, but probably one worth much less too (ask the RadioShack (RSH) dividend hounds how it's working out for them).

I include stocks I already either trade or follow and that have a large dividend. I add in a screen for large-yield stocks and add the ones that are appropriate:

GIS Chart GIS data by YCharts

General Mills (GIS)

Background: General Mills manufactures and markets branded consumer foods worldwide. The company also supplies food products to the foodservice and commercial baking industries. The company was founded in 1928 and is based in Minneapolis, Minn. General Mills trades an average of 4 million shares per day with a marketcap of $26 billion.

52-Week-Range: $36.75 to $41.06

Book Value: $10.31

Price to Book: 3.9

Payout Percentage: 49%

Investors are receiving $1.32 in dividends for a yield of 3.20% after General Mills raised the dividend amount from 30.5 cents a share up to 33 cents per quarter. If General Mills is able to reach the current fiscal year estimated earnings of $2.67, the dividend payout is below 50%, essentially alleviating worries about a dividend cut absent a major catalyst.

The five-year dividend growth rate is negative; however, the company increased the dividend twice after cutting the dividend to 28 cents in early 2010. After two increases, I am comfortable they are on the right track.

The average analyst target price for General Mills is $42.31, allowing considerable upside before analysts may rethink the premium. The last reported short interest is paltry and not meaningful with only 1.9% of the average trading float.

The daily chart isn't the prettiest girl at the dance, and if I only looked at daily charts I may take a pass. General Mills appears notably strong on the weekly chart, plus did I mention they raised the dividend twice in the last two years? A 3% dividend is sweeter than Cinnamon Toast Crunch, but another dividend increase is healthier for your portfolio than the Green Giant.

TheStreet's Christopher Versace writes about General Mills in The Week Ahead: Excessive Risk Unlikely .

GIS Dividend Chart GIS Dividend data by YCharts

1 of 6

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 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 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