Bonds and certificates of deposit have long been considered safer investments than stocks. But in an era of incredibly low interest rates, Cramer said, buying the former two could be a mistake.
A CD right now might offer a 1.5% return, while 10-year Treasurys pay you 3.75%. A company with a high-yielding dividend, however, can generate more than 7% (see: Kinder Morgan Energy Partners, among others). But even stocks with sub-4% yields these days may net more than those 10-years because dividends enjoy a better tax rate. And they offer the potential for upside, which is something those so-called safe investments don’t.
Cramer pulled together an updated list of his favorite high-yielding picks to help investors take advantage of the trend. (Click here for his first) These are companies that not only return generous sums to shareholders, but also have a history of raising those payouts. The end result? Investors collect a steady stream of income now and all but bank on even more in the future, whether through a rising stock price or an increasing dividend.
Read on for Cramer’s nine newest dividend plays. Just remember: The numbers listed here were correct as of publish time, but they may have changed a bit since. So do your homework! And make sure these stocks still work for your portfolio before you decide to buy.
Cramer’s charitable trust owns Altria and Emerson Electric.