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Seeking Return: Fast’s Fav Dow Dividend Payers

Monday, 4 Jun 2012 | 4:06 PM ET

Currently 26 Dow components have dividend yields that are higher than the yields on the 10-year. Here’s what the Fast traders like.

“If you want a high dividend yield with a stabile business model, Johnson & Johnson gets the job done,” says trader Jon Najarian.

McDonald’s at $86 with a 3.75% dividend yield is Terranova’s favorite. “That’s a name I’m long and that I’ve added to. I like the story and it’s a defensive play," he says.

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Trader Brian Kelly likes AT&T. He sees the stock as somewhat recession resistant. “Even in a downturn people continue to use their phones and smartphones,” he says. “And it has a 5% div yield.”

If you're looking for technicals to guide your trade, Barry Sine, Director of Research Drexel Hamilton says look at JPMorgan. "The stock has ended its falling knife pattern," he says. "This is a high quality name that investors can jump into."

Although it’s not a Dow component, Trader Simon Baker likes Abbott Labs for yield. “It’s a defensive name, with good product development and a yield of 3.2%.”

Seeking Return
The FMHR traders discuss opportunities to make high yields in the stock market.

Posted by CNBC's Lee Brodie

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Trader disclosure: On June 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long PNC; Joe Terranova is long USB; Joe Terranova is long TCBI; Joe Terranova is long SBUX; Joe Terranova is long SJM; Joe Terranova is long UPL; Joe Terranova is long WFM; Joe Terranova is long AAPL; Joe Terranova is long EMC; Joe Terranova is long NXPI; Joe Terranova is long LPX; Joe Terranova is long SNDK; Joe Terranova is long IBM; Joe Terranova is long CNX; Joe Terranova is long HAYG; Joe Terranova is short June Mini S&P Futures; Simon Baker is long C; Simon Baker is long GLD; Simon Baker is long JOYG; Steve Grasso is long ASTM; 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 MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA

For Jeff Kilburg
Jeff Kilburg is long GLD
Jeff Kilburg is long GDXJ

For Meredith Adler
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services in the past 12 months from DG
Barclays Bank PLC and/or an affiliate has received compensation for investment banking services in the past 12 months from DLTR
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from DG
Barclays Bank PLC and/or an affiliate has received non-investment banking related compensation from DLTR
The following companies have been an investment banking client of Barclays: DG
The following companies have been an investment banking client of Barclays: DLTR

For William Katz
Citigroup Global Markets Inc. or its affiliates expects to receive or intends to seek, within the next three months, compensation for investment banking services from BK
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The Firm is a market maker in the publicly traded equity securities of SCHW
The Firm is a market maker in the publicly traded equity securities of AMTD

For Keith McCullough
Keith McCullough is long XLU
Keith McCullough is short XLI



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