5 Buy-Rated Stocks Outyielding 'The 30-Year'

NEW YORK ( TheStreet) -- TheStreet Ratings uses a point-based system to assign letter grades to stocks. The cream of the crop -- those that receive a perfect 100 -- are given an "A+" and represent a small percentage of the stocks that we cover (currently, 84 out of more than 5,000 issues).

Browsing this list, you'll discover a common thread between many of these stocks: Most of them pay dividends.
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That's because TheStreet Ratings stock-rating model favors defensive investments with a bias toward conservatively financed companies that have demonstrated a history of favorable shareholder returns. And as history proves, dividends account for a large portion of the average investors' total stock market return.

The five stocks on the following pages are among the highest-rated stocks that we cover, and they all pay dividends in excess of the 30-year U.S. Treasury bond. They might make an attractive addition to your income portfolio.

As always, stock ratings should not be treated as gospel -- rather, use them as a starting point for your own research.

Coca-Cola

Coca-Cola ( KO) is a manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups in the world.

Dividend Yield: 2.79%

Rated "A+ (Buy)" by TheStreet Ratings: Coca-Cola's gross profit margin for the first quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. Coca-Cola has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.66% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

Kraft Foods

Kraft Foods ( KFT) through its subsidiaries, manufactures and markets packaged food products, including snacks, beverages, cheese, convenient meals and various packaged grocery products.

Dividend Yield: 3.09%

Rated "A+ (Buy)" by TheStreet Ratings: Kraft Foods' gross profit margin for the first quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. Kraft Foods has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.11% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

Kimberly-Clark

Kimberly-Clark ( KMB) is engaged in the manufacturing and marketing of a range of consumer products.

Dividend Yield: 3.74%

Rated "A+ (Buy)" by TheStreet Ratings: Kimberly-Clark's gross profit margin for the first quarter of its fiscal year 2012 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. Kimberly-Clark has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.49% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

Con-Edison

Con-Edison ( ED) through its subsidiaries, provides electric, gas, and steam utility services in the U.S.

Dividend Yield: 4.00%

Rated "A+ (Buy)" by TheStreet Ratings: Con-Ed's gross profit margin for the first quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. Con-Ed has weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained unchanged from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

Bristol-Myers Squibb

Bristol-Myers Squibb ( BMY) is a global biopharmaceutical Company, which is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of pharmaceutical products.

Dividend Yield: 4.01%

Rated "A+ (Buy)" by TheStreet Ratings: Bristol-Myer Squibb's gross profit margin for the first quarter of its fiscal year 2012 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. Bristol-Myers Squibb has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.11% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.