Top Stocks, Big Dividends

Bill Wilton
December 8, 2011

Cash is king and stocks that deliver cold hard cash directly to investors are looking even more attractive in these uncertain times.

With the EU debt crisis seeming to be at a constant boil, many have made safety the number 1 priority for their portfolios.

Of course, if you're fearful you could always just unload positions. But that may not always be the best option.

Get Paid in Cash, Don't Hide in it

While the exact number may vary, the consensus says that the vast majority of the market's overall gains come down to about 5% of the trading sessions, give or take a few percent. So, if you are not at least somewhat long on those days you have a 100% chance of missing the bulk of the return in equities.

Rather than sitting out, opt for a more conservative portfolio that will pay you a healthy dividend. Collect the cash to soften the blow if the market does fall. If stocks head higher the regular payments can make it that much sweeter.

Lower Price, Higher Yield

The yield on a stock's dividend is the annual dividend payment divided by your cost basis. So, if you are getting in at a low price, as the market is now offering, your yield will be significantly higher than if buy after we see shares move higher.

Here are a few stocks, with a hearty dividend payment, good growth prospects and a favorable Zacks Rank.

CVR Partners (NYSE:UAN - News) has a brief history having been spun off earlier this year, but shares are a Zacks #2 Rank (Buy) and pay a healthy dividend.

With shares trading near $29, the yield works out to just under 10%. Assuming that payment stays flat and is reinvested at this rate, investors would double their money in less than 8 years. Not many stocks offer that kind of potential.

Also, with earnings on the rise, this fertilizer company offers capital gains as well. Right now shares are going for less than 12 times forward estimates. Good earnings, cheap valuations, and a big dividend...not a bad deal.

High dividends are a hallmark of partnerships and pipelines. Enterprise Products Partners (NYSE:EPD - News) is no exception.

This MLP has over 50,000 miles of pipeline, sending nat gas and crude oil around North America.

Enterprise has been consistently increasing its cash distribution for more than 7 years. The payout is now yielding about 5.3% and shows no signs of slowing.

Estimates are also moving higher as the company continues to report better than expected results. The latest earnings surprise came on Nov 2 with EPS of $0.55, a nickel better than expected.

Integrys Energy Group (NYSE:TEG - News) is an electric and nat gas utility company, another area synonymous with dividends.

The company pays out over 5% per share to its investors and also has steadily growing earnings. EPS for this year is expected to come in at $3.37, up 7.5% over the 2010 figure.

Next year's Zacks Consensus Estimates is at $3.52 for a 4.6% growth rate.

Tip of the Iceberg

These are just a few of the dividend paying stocks that are worth another look. There are plenty more out there, so roll up your sleeves and dig in.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Home Run Investor service

ENTERPRISE PROD (EPD): Free Stock Analysis Report

CVR PARTNERS LP (UAN): Free Stock Analysis Report

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