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

Three Dividend Stocks Your Portfolio Is Begging You to Buy

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 - Get Report)

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

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
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
Only $49.95
14-Days Free
14-Days Free
GE $30.75 0.00%
INTC $30.28 0.00%
T $38.82 0.00%
AAPL $93.74 0.00%
FB $117.58 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