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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Rising Dividend Stocks That Don't Care About the Fiscal Cliff

NEW YORK ( TheStreet) -- I am reading nonstop negative news about the fiscal cliff and the possibility the European economy will fall off the map.

You most likely are reading the same, and perhaps you're wondering whether any stocks are moving higher. After all, even one of my favorite stocks, Apple (AAPL), is under pressure as a result of a selling feedback loop.

A selling feedback loop occurs when investors who would otherwise prefer to continue holding a stock find themselves forced to sell because of margin calls (self-imposed or otherwise) and stop-losses. Initial selling may be caused by an internal or external force. Once started, more selling begets more selling, and round and round the loop spirals lower.





In Apple's case, the most likely catalyst for the initial selling was the expectation that taxes on capital gains would rise. The selling has driven Apple shares to less than $600, which is a gift by most metrics.

Nevertheless, there are other stocks that are climbing and that pay big dividends. I'm talking steady quarterly dividends, not just the one-time special dividends.

In today's crazy "fiscal cliff is here, is not here" market, it's not so easy to separate the winners from the losers, but here are a few bullish high-yield companies for your review. CAG Dividend Yield Chart CAG Dividend Yield data by YCharts

Conagra Foods (CAG)

Background: ConAgra Foods operates as a food company primarily in North America. The company operates through two segments, Consumer Foods and Commercial Foods.

52-Week Range: $23.64 to $29.97

Book Value: $11.22

Price-to-Book Ratio: 2.6

Earnings Payout Percentage: 63%

TheStreet's Jim Cramer writes about Conagra Foods ConAgra-Ralcorp Deal Speaks Volumes in this article.

Shareholders receive $1 annually in dividend payments. The yield is 3.4%, based on the recent high.

Shares have moved higher in the last month, with most of the gains taking place within the last couple of weeks. In the last week of November, Conagra gapped higher again for the second time since mid-September.

Analyst opinion is mixed. As I write this, Conagra Foods has seven buy and eight hold recommendations. No analysts rate it a sell, but the hold ratings may have missed a good opportunity. In the last 12 months, the shares have really moved higher. The one-year return is 16%, and the average analyst target price for Conagra Foods is $33.60. After adding in dividends, investor return during the last year is more than 20%.





Ken Griffin of the famous Citadel fund owned more than 6 million shares of Conagra in the latest filing. Griffin is good company to have when you own a stock. The short-sellers are not betting against Conagra or Citadel, and only 1.4% of the trading float is reported short.

Considering the explosive price action in the last six months, look for dips and overall market weakness as entry opportunities.

CAG Payout Ratio TTM Chart CAG Payout Ratio TTM data by YCharts

1 of 6

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
BBD $9.28 2.77%
JPM $60.58 -0.62%
PFE $34.79 -0.60%
TXN $57.18 -1.41%
WAG $81.65 2.05%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

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