Jim Cramer recommends looking at these five high-yielding stocks to upgrade your portfolio.
CNBC’s Jim Cramer on Monday provided investors with a list of five “accidentally high yielders” that he believes will provide investors with a safe haven in a currently unpredictable market.
“In the depths [2008] financial crisis, you have an amazing opportunity to buy randomly high yields… real companies with stable dividends, whose stocks have fallen so much that their dividends have shown ridiculously high returns compared to the old days. This moment is getting similar,” the Mad Money host said.
“It’s worth sticking with the stock market as long as you stick to the right bands and avoid the wrong ones — the wrong ones are money-losing tech companies or any other momentum value stock that has long lost its momentum,” he added.
The Dow Jones Industrial Average rose 0.08% on Monday, while the S&P 500 fell 0.39%. The Nasdaq Composite Technology Index fell 1.2%.
Cramer previously compiled a list of high-yielding stocks in March, highlighting ten companies he thought were worth investing in.
“Of these, [Simon Property Group is] the only one I still feel confident in. … We arrived too early and were too confident about retail. I won’t make that mistake again,” he said. “At the same time, even high dividends are not enough to support stocks in a bad sector.”
“That’s why we need to raise the valuation of our random high-yielding portfolio,” he added.
To compile his list of randomly high-yielding companies, Cramer began by looking up names in the S&P 500 to stick with “the biggest of the big companies.” It singled out stocks that meet the following criteria:
- Has no yield below 3.5%
- Are down 25% or more from their highs
Left with 21 names that matched his terms, including Simon Property Group and Morgan Stanley, two names that were on his most recent high-yield list, Cramer further narrowed the list down to five stocks.
Here is the list he made:
- Huntington Banksharz
- truist
- Best Buy
- whirlpool
- Digital Real Estate
Disclosure: Cramer’s Charitable Trust holds shares in Morgan Stanley.
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