BP : The stock yields 5.8%, but Cramer likes the expected cost cuts and the growth, which comes thanks to last week’s purchase of Devon Energy’s Brazilian and Gulf of Mexico properties.
DuPont : What was once a play on housing, and even pharma, is now an investment in emerging markets, Cramer said. DD yields 4.4% and the company has paid 422 consecutive dividends. Cramer fully expects that trend to continue. Click here for more on DuPont.
Kinder Morgan Energy Partners : This natural-gas pipeline play isn’t exposed to the commodity’s prices, which is why Cramer likes it so much. Well, that and the 6.5% dividend yield.
Verizon Communications : Cramer wanted a utility in his basket of Obama-proof stocks, and therefore gave the nod to telco. He thinks there’s a good chance VZ will boost its dividend, which should boost the 6.3% yield, too.
Eli Lilly : This company has increased its dividend for 42 straight years, and Cramer doubted that health-care reform would prevent a 43rd. LLY yields 5.4%.
All together these five stocks offer an average yield of 5.7%. If that’s not enough, then investors might consider Altria and its 6.8% payout instead of DuPont. That bumps up the basket’s average return to 6.2%, which is a sizable number even in the face of higher taxes.
Now, Cramer doesn’t think these stocks will be able to withstand a wholesale sell-off if investors see 2011 as the year that profit taxes go through the roof.
“But at least you’ll have the edge on the guys who don’t attempt to immunize themselves” from health-care reform, he said.
Cramer’s charitable trust owns Altria and BP.
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