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The markets had a great month in October, so it makes sense to take some profits or cut back on risk-- especially on any rallies. This market is very fragile, and as we are quickly learning in November, it probably won't take much to cause the market to drop, especially since most indexes were recently pushed close to the high end of their trading ranges. There are still many challenges facing Europe and the debt solutions that were recently presented could easily unravel.

Investors might want to consider taking profits in certain dividend stocks, many of which are getting stretched in terms of valuation due to investors who are hungry for income, and also because Jim Cramer has been recently telling investors to buy the dividend stocks below. Cramer is known for his top performing returns when running a hedge fund, and for his stock picks on the "Mad Money" television show. Many investors follow Cramer regularly and often buy stocks based on his recommendations. Many of these stocks are trading near their 52 week high, so now is a great time to consider selling some of these dividend stocks that Cramer has given a buy rating. Chances are there will be opportunities to buy them back at lower prices:

Verizon (NYSE:VZ) is a leading communications company and provides voice, Internet access, broadband data, long distance, etc. A recent article in Barrons.com states that a couple of analysts believe the upside is limited. In fact, Deutsche Bank has a $37 price target and Credit Suisse has a $33 price target which means the stock appears overvalued now.

Here are some key points for VZ:

  • Current share price: $36.74
  • The 52 week range is $31.60 to $38.95
  • Earnings estimates for 2011: $2.24 per share
  • Earnings estimates for 2012: $2.60 per share
  • Annual dividend: $2 per share which yields 5.3%

Bristol Myers (NYSE:BMY) is a leading pharmaceutical company. Cramer likes the new drug pipeline and thinks Bristol Myers could be a takeover target. The dividend yield is getting smaller as the price of this stock rises. It recently hit a new 52 week high, and it looks extended now. I would sell and consider buying back on dips.

Here are some key points for BMY:

  • Current share price: $31.56
  • The 52 week range is $24.97 to $33.27
  • Earnings estimates for 2011: $2.25 per share
  • Earnings estimates for 2012: $2.04 per share
  • Annual dividend: $1.32 per share which yields 4.1%

Consolidated Edison (NYSE:ED) is a major utility providing electric, gas, and steam primarily in New York, New Jersey, Pennsylvania and other areas. The dividend has been raised each year for the last 37 years, and a utility stock is all about stability. However, this stock has been up in recent trading and it is trading near the 52 week high. An analyst at Jeffries recently said this stock is "too pricey", so it was downgraded to underperform.

Here are some key points for ED:

  • Current share price: $57.24
  • The 52 week range is $47.51 to $59.89
  • Earnings estimates for 2011: $3.55 per share
  • Earnings estimates for 2012: $3.69 per share
  • Annual dividend: $2.40 per share which yields 4.3%

ConocoPhillips (NYSE:COP) is one of the largest integrated oil and gas companies. This company is involved in exploration, production, processing, and transportation of various energy products and fuels. This company has extensive oil and gas reserves which will increase in value as energy prices rise. This is a great stock for the long term, but the stock has jumped from about $62 to around $72 in just a few days, so I would sell now and buy back cheaper. The higher stock price has pushed the yield below 4%.

Here are some key points for COP:

  • Current share price: $68.17
  • The 52 week range is $58.37 to $81.80
  • Earnings estimates for 2011: $8.19 per share
  • Earnings estimates for 2012: $8.87 per share
  • Annual dividend: $2.64 per share which yields 3.7%

Public Storage (NYSE:PSA) is a real estate investment trust (REIT) that invests in storage facilities. With so many REIT stocks yielding more than twice what Public Storage is paying, it makes more sense to be in those stocks. The yield in this stock does not seem commensurate with the risk of owning a stock. Furthermore, this stock has had a huge run from recent lows. In early October, the shares dropped to about $105 and have since rallied almost 30%. With this stock yielding just under 3% per year, it would take about 10 years worth of dividends to make a gain of about 30%. With the stock near the 52 week high, I would sell now.

Here are some key points for PSA :

  • Current share price: $128.58
  • The 52 week range is $94.60 to $132.20
  • Earnings estimates for 2011: $5.86 per share
  • Earnings estimates for 2012: $6.17 per share
  • Annual dividend: $3.80 per share which yields 2.9%

American Electric Power (NYSE:AEP) is a major utility company and generates electricity derived from coal, natural gas, nuclear, and hydroelectric energy. American Electric has operations primarily in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. This stock dropped to about $34 recently, but has rebounded sharply in recent days. I would use this rally to sell and consider buying at lower prices, possibly around $36 and below. If you sell around $40 and buy back around $36, you could make around two years worth of dividend payments in a much shorter time.

Here are some key points for AEP:

  • Current share price: $38.92
  • The 52 week range is $33.09 to $40
  • Earnings estimates for 2011: $3.12 per share
  • Earnings estimates for 2012: $3.22 per share
  • Annual dividend: $1.84 per share which yields 4.8%

The Coca Cola Company (NYSE:KO) is one of the most famous brands, and this company owns many other well known brands such as Sprite, Vitamin Water, Minute Maid, Dasani, and more. Investors know the products Coca Cola sells will do well even if the economy does not, however, as much as I like this stock, it looks overbought in the short-term. I would try to buy at lower prices, around $66 per share or less. At current prices the yield has been pushed down to only 2.7%.

Here are some key points for KO:

  • Current share price: $67.09
  • The 52 week range is $54.92 to $71.77
  • Earnings estimates for 2011: $3.84 per share
  • Earnings estimates for 2012: $4.17 per share
  • Annual dividend: $1.88 per share which yields 2.7%

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 7 Cramer Dividend Stocks To Sell Now