This Day On The Street
Continue to site
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

5 Dividend Stocks to Fight Off the Fiscal Cliff

Brand doesn't hurt either. The firm's namesake soda enjoys the number-one spot in the soft drink market, with the Coke brand one of the best recognized and most valuable in the world. Emerging markets like China hold the keys to growth for Coca-Cola -- as consumers' wealth increases, the amount of cash that they're willing to spend on luxury food products like soft drinks increases as well. In more mature markets, innovations like the Freestyle fountain machine should help wring some growth out of markets that have remained stagnant.

Financially, this firm is in strong shape, with $28 billion in cash and investments largely offsetting Coke's $32.7 billion debt load. Much of that debt is the result of the firm's acquisition of its U.S. bottling operations -- while pricey, the purchase made sense for Coke. And it still leaves ample room for a dividend hike in the coming quarter.

Home Depot

As the world's largest home improvement retailer, Home Depot (HD - Get Report) has been enjoying some strong tailwinds in 2012. An improving housing market is leaving consumers feeling the wealth effect, and hiking spending on home improvements, and prompting leaps and bounds in housing starts. Because of that, HD has seen its share price rally by more than 52% year-to-date. Still, investors could be in for more upside at the hands of a dividend hike.

With more than 2,250 big box stores spread across the globe, the firm has a reach that enables it to enjoy economies of scale in distribution, purchasing, and marketing. That wasn't always the case, however -- leading up to the Great Recession in 2008, HD overextended itself by opening too many stores and racking up too much debt. Since then, though, the firm has restructured aggressively, and it's now reaping the rewards in the form of huge profitability numbers for a mass retailer.

While the vast majority of stores are located in the U.S. and Canada, markets like Mexico have been offering Home Depot stellar growth rates for over a decade now (the firm's foray into China has been less successful). With twin growth engines abroad and with the recovering housing market in the U.S. and Canada, this stock should be able to keep up its trajectory. Right now, HD pays out a 29-cent quarterly dividend for a 1.8% yield. With cash generation looking strong, investors should be on the lookout for a near-term dividend boost in HD.
2 of 4

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
Only $9.95
14-Days Free

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
BLK $356.33 0.00%
HD $133.89 0.00%
KO $44.80 0.00%
SLB $80.34 0.00%
TJX $75.82 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs