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Pros Reveal Favorite Dividend-Yielding Stocks

Wednesday, 10 Apr 2013 | 12:31 PM ET
Is Your Best Move to Keep Betting on Big Caps?
Wednesday, 10 Apr 2013 | 12:00 PM ET
The Street's love affair with dividends shows no signs of stopping. But after the big run, how much longer can it really last? Get insights from the Fast pros.

On Wednesday, pro traders were talking about money flows and which stocks were most likely to attract new buyers after the S&P 500 climbed to a new all-time high.

The bullish sentiment was ignited, at least in part, by the Federal Reserve minutes which were unexpectedly released hours early.

Essentially those minutes suggest to pros that Fed will keep its quantitative easing program, known as "QE", in place for some time.

If the Fed remains committed to keeping interest rates low, the prevailing belief on Wall Street is that in their quest for yield, investors will rotate into dividend paying stocks. (Read More: You Must Understand This About Stock Yields)


In fact, big cap dividend payers have been leading the rally. Of course, after the big run, not all dividend paying stocks may attract buyers equally.


Following, the Fast Money pros reveal favorites div-yielding stocks; that is, those they think have more upside.

Stephen Weiss, managing partner at Short Hills Capital
Johnson & Johnson
Bank of America
Vodafone

"I expect the big cap rally to continue," said Weiss on the Halftime Report. Weiss thinks after Cyprus, many more European investors want to put money to work outside Europe. "Big cap pays dividends and that should draw more foreign funds," Weiss said.

Jon Najarian, co-founder OptionMonster.com
Canadian Natural Resource
Bed, Bath & Beyond
Broadcom

The Option Monster remains bullish on the market broadly. He thinks money will flow into big cap dividend payers that have lagged to date.


Tom Grill | Photodisc | Getty Images

JJ Kinahan, Chief Derivatives Strategist for TD Ameritrade
GE
Microsoft
Coca-Cola

"All of these pay a yield of 3% or higher," said Kinahan. "I think these and similar stocks attract new money simply because there's no place in the market to find that kind of yield." And Kinahan added since these are blue chips, conservative investors may rotate into these stocks less worried about sharp declines.

Brian Kelly, founder of Shelter Harbor Capital
Microsoft
Intel
Cisco

It's important to note that Kelly remains largely bearish on the market. "I thought that Europe would short circuit the rally – and I still think it could," he said. "I would not go long the market here." However he added, price is truth and the truth is that the market has powered higher. And he thinks the stocks listed above should attract new buyers as long as the overall trend remains higher.

Trader disclosure: On April 10, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders; Steve Weiss is long SODA; Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long JNJ; Steve Weiss is long ORCL; Steve Weiss is short BHP; Jon Najarian is long FXI; Jon Najarian is long JNPR; Jon Najarian is long CTXS; Jon Najarian is long IMGN; Jon Najarian is long KMX; Jon Najarian is short VXX puts; JJ Kinahan is long WFC; JJ Kinahan is long JPM; JJ Kinahan is short SPY Options; JJ Kinahan is long MSFT stock & options; JJ Kinahan is long C Options; Brian Kelly is long TREASURIES; Brian Kelly is long GOLD; Brian Kelly is long SILVER; Brian Kelly is short S&P 500; Brian Kelly is short Copper; Brian Kelly is short DAX

  Price   Change %Change
JNJ
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BAC
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VOD
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CNQ
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BBBY
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BRCM
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GE
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MSFT
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KO
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INTC
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CSCO
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