7 Of Jim Cramer's Favorite Dow Stocks

|
Includes: CVX, HD, IBM, KO, MCD, MDLZ, WMT
by: Dividendinvestr

Jim Cramer pointed out something on Tuesday’s shows that some bears may have missed: The Dow Jones Average is only down by 1%. The percentage is impressive considering that Germany's market is down 15%, France 17%, the U.K. 8%, Canada 12%, Japan 14% and China 23%. Of course, it deserves mentioning that while the average is good, the number of stocks in the Dow that are actually making anything is really pretty limited. Take these seven stocks. They are the only ones to break double digits over the last four years

McDonald’s (NYSE:MCD) is currently trading at $89.66, near its 52-week high of $91.22. It has a dividend yield of 3.10%. Over the last four years, MCD has made 75% for investors that reinvested their dividends. Jim Simons is a believer. He keeps $207 million of his Renaissance Technologies portfolio invested in the global fast food chain.

International Business Machines (NYSE:IBM) is also trading near its 52-week high, currently coming in at $185.82 a share. IBM offers a smaller yield than MCD, but it returned 65% over the last four years for investors that reinvested their dividends; almost as much as MCD did. Paul Ruddock and Steve Heinz keep $701 million of their Lansdowne Partners fund invested in the technology company.

Wal-Mart Stores, Inc. (NYSE:WMT) is also performing strongly. It was nearly at its 52-week high of $57.90, trading most recently at $55.15 a share. WMT offers a 2.70% dividend. Investors who have been with WMT for the last four years and reinvested their dividends with the company enjoyed a return of 30%. WMT is a favorite of Boykin Curry. He holds almost 5% of his Eagle Capital Management portfolio invested in the discount retailer.

The Coca-Cola Company (NYSE:KO) has a strong dividend yield as well, offering investors 2.80%. It recently traded at $67.07 a share. For those who reinvested their dividends, the soft drink company made 28% over the last four years. Warren Buffett famously holds more than 25% of Berkshire Hathaway’s (NYSE:BRK.A) $52.9 billion portfolio in KO.

Chevron Corp. (NYSE:CVX) is an oil company that returns 3.20% dividend yields. It also brought in returns over 20% during the last four years. CVX recently traded at $96.72 a share. Cramer also has CVX in his charitable trust’s portfolio because of its relatively high expected growth rate.

Home Depot, Inc. (NYSE:HD) recently traded at $34.27 a share. It may be down a little from its 52-week high but over the last four years it still brought in returns above the 20% mark. The construction supply and DIY-er haven also gives investors a 2.90% dividend yield. HD is popular with Ralph V. Whitworth, who holds $415 million of his Relational Investors fund in the company.

Kraft Foods, Inc. (KFT) offers a 3.40% dividend yield and it returned more than 20% over the last four years. It recently traded at $34.54 a share. The foods company is a favorite of Bill Ackman, who has more than 12% of his $6.4 billion Pershing Square fund invested in KFT.

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

About this article:

Expand
Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500.
Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here