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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
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SYM TRADE IT LAST %CHG
GE $24.56 -0.04%
INTC $29.22 2.20%
T $33.04 0.67%
AAPL $110.64 -1.50%
FB $88.48 -1.60%

Markets

Chart of I:DJI
DOW 16,372.93 +21.55 0.13%
S&P 500 1,960.64 +11.78 0.60%
NASDAQ 4,763.1680 +13.1890 0.28%

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