Sponsored By:

6 Dividend Stocks You Need to Watch

Utilities, a REIT, a pharma, a bond fund and a preferred fund that are worth keeping an eye on

   

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.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/six-dividend-stocks-you-need-to-watch-fun-d-bmy-du/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.