This Day On The Street
Continue to site right-arrow
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!

Three Dividend Stocks Your Portfolio Is Begging You to Buy

Stocks in this article: GE INTC T

NEW YORK ( TheStreet) -- With the market trading near all-time highs, picking winners is about as difficult as shooting fish in a barrel. Everyone is once again a stock-picking genius.

Two things never change, though: People get overly confident in bull markets, and every bull market is followed by a bear market. As an investor, you want to position your portfolio to win in both bull and bear markets.

One category of stocks that stand the test of time is high-yield dividend stocks that are not "dividend traps." A dividend trap stock is one that is attractive because the smart money is dumping the shares as quickly as they can. Buying a high yield dividend stock that is likely to reduce or halt dividends is like picking up nickels in front of a steamroller.

Here are five stocks I think you want to include in your portfolio. They are the stocks that you can profit from today, and should stay relatively strong if the market retraces some of the recent gains.

GE Dividend Yield Chart GE Dividend Yield data by YCharts

General Electric (GE)

Background: General Electric is one of the largest and most diversified industrial corporations in the world. GE is also an original member of the Dow Industrial average.

Earnings Payout Percentage: 51%

I've been bullish on General Electric for several years now. The company makes it easy to remain bullish because the stock continues higher while the income and balance sheets grow at a comparable rate.

Shares are modestly higher from about a month ago, and investors receive 76 cents annually in dividend payments for a yield of 3.1%. From a year ago, the shares are up over 20%, and analysts are calling for a price target of $25.85. I see no reason why $30 is unattainable within the next two years.

At $30, General Electric will still be well off the highs of 2007 and any argument that the shares are overvalued quickly dissipate after considering only 0.7% of the float is shorted.

The key to buying General Electric is to wait for three to five down days in a row. Wednesday provides the first opportunity after shares declined since Thursday last week.

GE Payout Ratio TTM Chart GE Payout Ratio TTM data by YCharts

1 of 3

Select the service that is right for you!

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!


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

  • 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