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Where to Seek Yield in a 2% World

Friday, 27 Apr 2012 | 5:12 PM ET

U.S. economic growth cooled in the first quarter. Is your best bet to look for yield in a 2% world?

Chris Konstantinos of Riverfront Investment Group thinks it is.

And on CNBC’s Fast Money Konstantinos revealed his top 5 favorite names:

Apple
Microsoft
JPMorgan
Chevron
Pfizer
Source: Chris Konstantinos, RiverFront Investment Group

“Rather than just look at the big yielders I prefer for looking for dividend growth -- and the capacity to grow dividends in the future,” Konstantinos explains.

And in case you’re surprised to see Apple on this list, he adds. “Apple’s dividend may be small – but their growth is infinite."

He goes on to explain, "They have the capacity to grow yield over time significantly. I think there’s still a huge institutional investor base that’s dividend focused that’s not in Apple but eventually will be pulled in.”

And on a related note, if you’re looking for dividend yield and some overseas exposure, Konstantinos has an idea for you.

“You can play China with Qualcomm. Their yield is small but they’re US-based, they pay a small dividend and you get exposure to all the big trends that benefit China like wireless mobile.”

Dividend Investment Strategy
Grainger Industrial Supply raised its dividend on Thursday after a strong earnings report. Jim Iuorio, TJM Institutional Services, offers insight. Chris Konstantinos, Riverfront Investment Group, also shares his perspective on the best dividend plays right now.

* You can find our conversation with Chris Konstantinos about 2 minutes into this video clip.



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Trader disclosure: On Apr 27, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian is long SBUX; Pete Najarian is long INTC; Pete Najarian is long MSFT; Pete Najarian is long HPQ; Pete Najarian is long CE; Pete Najarian is long WLT; Pete Najarian is long MOS; Pete Najarian is long ECA; Pete Najarian is long PFE; Pete Najarian is long MRK; Pete Najarian is long COP; Pete Najarian is long APPL; Pete Najarian is long OPTIONS IN ABX; Pete Najarian is long OPTIONS IN BMY; Pete Najarian is long OPTIONS IN CLF; Pete Najarian is long OPTIONS IN DVN; Pete Najarian is long OPTIONS IN GT; Pete Najarian is long OPTIONS IN MGM; Pete Najarian is long OPTIONS IN SBUX; Pete Najarian is long OPTIONS IN SNDK; Pete Najarian is long OPTIONS IN STI; Pete Najarian is long OPTIONS IN V; Pete Najarian is long OPTIONS IN XCO; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long PRST; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA; Steve Grasso is long CUBA; Steve Grasso is long GERN; Steve Grasso is long HPQ; Steve Grasso is long HSPO; Steve Grasso is long MU; Steve Grasso is long NYX; Steve Grasso is long UAL; Steve Grasso is long P; Steve Grasso is long PRST; Steve Grasso is long VVUS; Steve Grasso is long XRX; Steve Grasso is long ZNGA; Steve Grasso is short AAPL; Steve Grasso is short QQQ

For Mike Murphy
Mike Murphy is long JPM
Mike Murphy is long INTC
Mike Murphy is long ANF
Mike Murphy is long SBUX
Mike Murphy is long FCX
Mike Murphy is long PHM

For Willie Williams
Nothing to disclose

For Herman Leung
SFG is a market maker in the securities of Amazon.com AMZN

For Nicole Miller Regan
Piper Jaffray was making a market in the securities of SBUX

For Chris Konstantinos
Pending

CNBC.com with wires.

  Price   Change %Change
CVX
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JPM MLP ETN
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MSFT
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PFE
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QCOM
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AAPL
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Halftime Report

  • Jay Yarow, The Business Insider, and Steve Milunovich, UBS, discuss whether Tim Cook is to blame for Apple's drop in growth. I think it's pretty clear they missed the big phone market and overestimated the success of the plastic 5C phone, says Milunovich.

  • CNBC's Eamon Javers reports on Bill Ackman's stake in Allergan. Javers says this is a classic case of insider trading that is not against the rules.

  • FMHR trader Josh Brown thinks Dunkin' Brands looks fantastic technically, while Mike Murphy says investors are questioning the company's massive expansion plans.