At least once a week I find the dividend payers I like best for longer term holds. My primary objective is to obtain yield, with capital appreciation as a secondary goal. Take a look and see if these stocks fit comfortably in your portfolio.
AT&T ( T) Background: AT&T is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies are the providers of AT&T services in the U.S. and around the world. Ma Bell is near the 52 week high, and we can anticipate a resistance level test within the next few weeks. If you're not holding some AT&T now, and don't feel comfortable buying when the price is "this high," at least place the ticker on your watch list for a buy into a dip. The company has a rich history of rising dividend payments, and I see no reason why that will change in the near future. Investors are receiving $1.80 in dividends for a yield of 4.7%. Almost like clockwork, AT&T raises their dividend, and we appear closer to the next dividend hike than the last one. T Profit Margin TTM data by YCharts
The payout ratio, a key metric I pay attention to based on forward earnings estimates is about 55%. The payout ratio is higher than I would prefer, but well within my tolerance level. The last reported short interest is paltry and without reason to consider it a significant influence at only 1.7% of the average trading float. Short interest under 2% is bullish for a rising stock.
Bristol-Myers Squibb ( BMY) Background: Bristol-Myers Squibb Company, a biopharmaceutical company, engages in the discovery, development, licensing, manufacturing, marketing, distribution, and sale of biopharmaceutical products that help patients prevail over serious diseases worldwide.
Currently, the short interest based on the float is negligible and not a significant concern. Short interest is 2.4%. A quick glance at a daily or weekly chart demonstrates short sellers are not in a happy place right now, but there isn't enough short interest to create a meaningful squeeze. BMY Payout Ratio TTM data by YCharts
DD Payout Ratio TTM data by YCharts
E. I. du Pont de Nemours ( DD) Background: DuPont is involved in science and technology in a range of disciplines including high-performance materials, specialty chemicals, pharmaceuticals and biotechnology. The company operates globally through strategic business units. 52 Week Range: $41.67 to $53.98 Price To Book: 4.6 Earnings Payout Percentage: 46% DuPont may not be the perfect stock to own but it gets incredibly close. With a closing price on Wednesday less than $50 a share, it's still cheap. While the market is making new highs, DuPont hasn't kept pace. It's hard to imagine a company that trades about six million shares a day can go unnoticed, but what other explanation is plausible? At first glance, an investor may point to the earnings misses. It's true DuPont missed three out of the last four earnings reports; however, the misses are just a component of the equation. The last time DuPont reported a miss, it was flirting with a single digit earnings multiple. In a nutshell, the last time DuPont missed, it was already priced in. During the most recent earnings report, Dupont gave what Wall Street wanted, a respectable beat, but the French company has yet to fall in favor with investors.
At the time of publication the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.