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Dividend stocks deliver income and perform much better than the rest of the market, both during market downturns and on average. Among 104 stocks that were recommended on Jim Cramer's Mad Money during the last 30 days, we have selected our 9 favorite dividend stocks with strong fundamentals. All stocks in our list have Total Debt/Equity ratios of lower than 0.7, P/E ratios lower than 15 and dividend yields higher than 3%. We obtained market data from Finviz.

Stock

Market Cap
(Billion $)

Sector

Dividend Yield

P/E

Beta

Chevron Corporation (CVX)

194.2

Basic Materials

3.7%

7.2

0.77

Intel Corporation (INTC)

131.2

Technology

3.2%

11.1

1.08

Eli Lilly (LLY)

46.9

Healthcare

4.9%

10.5

0.68

Emerson Electric (EMR)

33.7

Industrial Goods

3.5%

14.7

1.23

Time Warner (TWX)

32.9

Services

3.0%

12.6

1.26

AFLAC (AFL)

18.3

Financial

3.4%

7.8

1.82

Eaton Corporation (ETN)

14.3

Industrial Goods

3.6%

10.5

1.52

Ensco plc (ESV)

11.0

Basic Materials

3.2%

13.2

1.27

Cliffs Natural Resources (CLF)

6.9

Basic Materials

5.1%

4.3

2.43

Click to enlarge all images.

Chevron (CVX) is one of the leading integrated energy companies operating worldwide. CVX recently traded at $98.46 and has a 3.7% dividend yield. CVX lost 2.1% during the past 12 months. The stock has a market cap of $194.2 billion, P/E ratio of 7.2 and Total Debt/Equity ratio of 0.07. CVX also had an EPS growth rate of 11.5% during the last five years.

Intel Corporation (INTC) provides integrated digital technology platforms worldwide. INTC recently traded at $26.07 and has a 3.2% dividend yield. INTC gained 14.5% during the past 12 months. The stock has a market cap of $131.2 billion, P/E ratio of 11.1 and Total Debt/Equity ratio of 0.16. INTC also had an EPS growth rate of 22.8% during the last five years.

Eli Lilly and Company (LLY) is the 10th largest pharmaceutical company in the world. LLY recently traded at $40.44 and has a 4.9% dividend yield. LLY gained 10% during the past 12 months. The stock has a market cap of $46.9 billion, P/E ratio of 10.5 and Total Debt/Equity ratio of 0.36. LLY also had an EPS growth rate of 9.8% during the last five years.

Emerson Electric (EMR) is a diversified technology company operating worldwide. EMR recently traded at $45.93 and has a 3.5% dividend yield. EMR lost 13.2% during the past 12 months. The stock has a market cap of $33.7 billion, P/E ratio of 14.7 and Total Debt/Equity ratio of 0.56. EMR also had an EPS growth rate of 7.9% during the last five years.

Time Warner (TWX) is a media and entertainment operating worldwide. TWX recently traded at $34.27 and has a 3% dividend yield. TWX lost 4.4% during the past 12 months. The stock has a market cap of $32.9 billion, P/E ratio of 12.6 and Total Debt/Equity ratio of 0.66. TWX also had an EPS growth rate of -5.5% during the last five years.

Aflac (AFL) provides supplemental health and life insurance. AFL recently traded at $39.07 and has a 3.4% dividend yield. AFL lost 20.1% during the past 12 months. The stock has a market cap of $18.3 billion, P/E ratio of 7.8 and Total Debt/Equity ratio of 0.29. AFL also had an EPS growth rate of 7.2% during the last five years.

Eaton Corporation (ETN) is a diversified power management company operating worldwide. ETN recently traded at $42.4 and has a 3.6% dividend yield. ETN lost 14.9% during the past 12 months. The stock has a market cap of $14.3 billion, P/E ratio of 10.5 and Total Debt/Equity ratio of 0.47. ETN also had an EPS growth rate of 6.1% during the last five years.

Ensco plc (ESV) provides offshore contract drilling services to the oil and gas industry worldwide. ESV recently traded at $47.47 and has a 3.2% dividend yield. ESV lost 12% during the past 12 months. The stock has a market cap of $11 billion, P/E ratio of 13.2 and Total Debt/Equity ratio of 0.46. ESV also had an EPS growth rate of -7% during the last five years.

Cliffs Natural Resources (CLF) is a mining and natural resources company. CLF recently traded at $48.69 and has a 5.1% dividend yield. CLF lost 43.7% during the past 12 months. The stock has a market cap of $6.9 billion, P/E ratio of 4.3 and Total Debt/Equity ratio of 0.6. CLF also had an EPS growth rate of 34.9% during the last five years.

Overall, we like these dividend stocks. Dividend stocks were great investments in 2011 and they will be in 2012 as well.

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