We’re always talking about dividends as a solid hedge to the market’s ups and downs, and we can never get enough names into the mix for possible portfolio inclusion.
A half-dozen names to look for in the future may not be the end-all for your portfolio, but they are a good place to start. So put these six on your “watch list.”
Cedar Fair (NYSE:FUN) – Dividend Yield 5%
This is an interesting REIT that owns regional amusement parks, making it a play on budget-minded consumer discretionary spending. The stock is trading near $30, perhaps a little high, but a move downward may provide an invitation to buy.
Dominion Resources (NYSE:D) – Dividend Yield 4%
This premier utility with a constructive chart operates in the mid-Atlantic region and has very steady revenue and profit growth. The company missed Q4 estimates due to warm weather, and I don’t expect it’ll hit the ball out of the park in the first quarter, either. The stock might be timely, though, if we get a hot summer and ACs are running high.
Consolidated Edison (NYSE:ED) – Dividend Yield 4%
A major provider of power to New York, New Jersey and Pennsylvania, ED is the most conservative utility within that sector, and traders view it as a virtual proxy for a corporate bond. Again, utilities are quiet money at the moment given the warm temperatures nationwide. I’m holding out for some higher-yielding picks if we can get more good news from the economic calendar. But if the economy starts to fade again, then ED is a go-to pick, as are other utilities.
Bristol Myers Squibb (NYSE:BMY) – Dividend Yield 4%
This stock is getting right in the area where a buy recommendation might be warranted soon. With the rotation out of some defensive sectors under way, the stock has pulled back a bit. I’m highly inclined to add BMY to our Conservative High-Yield Portfolio as it has a solid drug pipeline. Keep your fingers crossed.
Duff & Phelps Utility & Corporate Bond Trust (NYSE:DUC) – Dividend Yield 6%
This closed-end fund is a “haas” — Wall Street lingo for “horse.” I didn’t expect the bond market to rally alongside the stock market this month, but that has been the story, and DUC rallied right back up to its 52-week high. The yield is O.K., but we’re getting better with floating-rate funds.
Flaherty & Crumrine Preferred Income Fund (NYSE:PFO) – Dividend Yield 7%
It’s against my religion to pay a 22.65% premium to net asset value (NAV) for any closed-end fund. Treasury yields tanked again this week, and preferred stocks trade much like bonds, as they’re construed to be fixed-income assets, just junior to corporate bonds and convertible debt, but it’s a safe zone nonetheless. View this fund as a “must own” if the U.S. double-dips.