Diamondback Energy (FANG) pays a quarterly dividend of $1.00 with a yield of 2.91% and focuses on profitability relative to production volume.
Real Estate Income ( O ) offers a yield of 5.74% with monthly dividends and has grown its payout 124 times since its 1994 IPO.
Home Depot ( HD ) yields 2.48% with a quarterly dividend of $2.30, supported by resilient demand for renovations.
Some investors get rich while others struggle because they never realized that there are two completely different strategies for building wealth. Don’t make the same mistake, learn about both here.
As one of CBNC’s leading voices, when Jim Cramer speaks, the market and investor world listens. Mad Money catapulted Cramer into the stratosphere of legendary stock market talking heads, leading his legion of followers through bear and bull markets time and time again.
For this reason, when Cramer says you should buy one of his favorite dividend stocks, you should stop what you’re doing and listen. While Cramer can’t predict the future if anyone in the market world could, he might be the one who can, so looking at these three dividend stocks is worth your time.
For anyone who regularly follows CNBC or even catches Cramer flipping through the channels, his straight talk has been the key to his television success. You can push the funny sound effects he uses to get his point across, as well as pounding the table for shares. However, it cannot be denied that he has always had one important role to play: helping the everyday investors who follow him make money like seasoned market professionals.
So far, Cramer is often associated with growth and momentum names, but he has also often highlighted dividend-paying companies that focus on delivering steady income and long-term appreciation.
If you’re an investor like me who wants a source of reliable cash flow while trying to stay as safe as possible, you might want to look at any of these three standout stocks that he’s been talking about a lot lately. It’s safe to say that all three of these titles reflect some of Cramer’s favorite themes: buy and manage companies with the right discipline, pricing power and predictable performance.
Cramer has been bullish on Diamondback Energy (NASDAQ: FANG ) for several months now, repeatedly calling it one of the best-run energy companies in the American oilfield. With a dividend yield hovering around 2.91% and expected to pay a quarterly dividend of $1.00 per share on 11/13, it’s understandable why Cramer values this energy name.
What Cramer likely sees is that Diamondback Energy has figured out how to capture both revenue and growth in a volatile energy market. In a recent Mad Money segment, Cramer praised Diamondback’s focus on efficiency and delivering shareholder returns, calling it a “lean, mean, cash-generating machine,” which sounds exactly like what Cramer would say.
He also points out that he likes the name because the company’s management isn’t chasing “barrels…they’re chasing profitability,” so the company can pay you a lot when the price of oil fluctuates. Ultimately, Diamondback was the standout performer in the Permian Basin, and its ability to balance growth with a consistent dividend payout made it Cramer’s favorite in the energy sector without too much risk.
Real Estate Income’s (NYSE: O ) presence on this list should really come as no surprise to anyone who has listened to Cramer at any time recently. The company, which earned the nickname “Dividend Company of the Month,” has been a Cramer favorite for years, and for all the right reasons.
What’s more, Cramer likes to point out that not only does Real Estate Income have a dividend yield of 5.74%, but that its monthly payouts have been increased a ridiculous 124 times since 1994. the company was listed on the NYSE. The last dividend payout was $0.2695, which certainly won’t compromise your game consistency. Even better, real estate income is a growth stock that also combines a steady dividend payout, making it a diamond in the rough these days.
Cramer has often highlighted the company in his discussions of income investing, pointing to its diversified real estate portfolio as proof that slow and steady can still win the race. “Reality Income is the perfect stock to pay to wait,” Cramer says, and he’s sure.
Finally, he notes that real estate income and REIT strategies generally focus on long-term net leases with recession-proof tenants, which helps paint a fairly solid picture of what future cash flows will look like.
One of Cramer’s favorite blue-chip strongholds, Home Depot ( NYSE:HD ) , has long been a big name that he touts for its strong management team and hefty dividend. With a yield currently hovering around 2.48% and a quarterly cash payout of $2.30 per share, Cramer is on record calling Home Depot one of his top picks in the retail sector.
Ultimately, Cramer looks at the company’s strength in home improvement sales, which he believes reflects the American housing economy. Even in slower markets, Cramer notes that demand for renovations remains resilient and that lower mortgage rates could reignite property spending and contractor activity.
“Home Depot is what happens when you combine brand loyalty with capital discipline,” Cramer says. Even better, Cramer even has a strong view of Home Depot’s cash flow per share continuing to grow, giving the company room for dividend increases and even stock buybacks.
