4 Dependable Dividend Stocks that Cramer Likes
Jim Cramer discusses a lot of companies on his nightly show on CNBC, Mad Money. Since my recent focus has been on good dividend-yielding companies, I decided to review some of his picks to see if they would fit into my dividend-growth portfolio.
For my own criteria, in addition to a good yield, I look to the number of years that the company has been paying and raising dividends, its 5-year average Dividend Growth Rate (DGR) and the total return over the past twelve months.
Of the hundred plus companies that Jim has recommended in the last month, I've found only 4 companies that fit my criteria. They are dependable and stable, performing well, and have impressive DGRs. I suggest you take a look for your own dividend portfolio.
1. Kinder Morgan Partners (NYSE:KMP) has been paying and raising dividends for 16 years. It is currently trading at approximately $83 per share, and yields 6.0%. It has returned 14.2% over the past twelve months, and its 5-year DGR is 12.8%.
2. AT&T (NYSE:T) has been paying and raising dividends for 28 years. It is currently trading at approximately $35 per share, and yields 5.0%. It has returned 26.3% over the past twelve months, and its DGR is 6.6%.
3. Enterprise Products Partners (NYSE:EPD) has been paying and raising dividends for 15 years. It is currently trading at approximately $53 per share, and yields 4.9%. It has returned 22.9% over the past twelve months, and its DGR is 6.0%.
4. Verizon (NYSE:VZ) has been paying and raising dividends for 9 years. It is currently trading at approximately $45 and yields 4.6%. It has returned 25.7% over the past twelve months, and its 5-year DGR is 9.0%.
I truly believe that you can't go wrong with excellent companies like these. Even in the face of fiscal uncertainty, these dependable companies have proven themselves over and over, providing a steady and completely reliable stream of income in addition to their capital increases.
The Master Limited Partnerships (Kinder Morgan and Enterprise Products) also provide the added benefit of tax-deferment on 80% of their distributions. In exchange for some small hassle at tax-reporting time, these distributions are tax-deferred until you sell the shares. They are excellent holdings for someone building up their nest egg for retirement.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.