Jim Cramer says to consider these five high-yield stocks to upgrade your portfolio
CNBC’s Jim Cramer on Monday provided investors with a list of five “accidentally high yields” that he believes will provide investors with refuge in the currently unpredictable market.
“Deep in the  financial crisis, you had an incredible opportunity to accidentally buy the high yields … real companies with stable dividends that had seen their stock go down so much that their dividends sported ridiculously high yields compared to the old days. This moment is becoming similar, “the”crazy money“said the host.
“It’s worth sticking with the stock market as long as you stay with the right groups and avoid the wrong ones – the wrong ones are unprofitable tech companies or any other value-packed momentum stock that has long lost momentum,” he added.
The Dow Jones Industrial Average rose 0.08% on Monday while the S&P 500 fell 0.39%. The high-tech Nasdaq Composite was down 1.2%.
Cramer invented earlier a list of high-yielding stocks in March, highlighting ten names he believed to be investable.
“Of these, [Simon Property Group is] the only one I still feel confident about. … We went in too early and were too sure about retail. I’m not making that mistake again, “he said.” At the same time, even a high dividend isn’t enough to sustain a stock in a negative sector. “
“That’s why we need to improve our high-yield accidental portfolio,” he added.
To work out his list of accidental high returns, Cramer began looking for names in the S&P 500 to stick with the “biggest of large caps”. He has identified stocks that meet the following criteria:
- It has a yield of no less than 3.5%
- They are down 25% or more from their highs
He was left with 21 names that suited his conditions, including Simon Property Group and Morgan Stanleytwo names that were on his latest list of high-yielding stocks: Cramer narrowed the list down further to five stocks.
Here is the list he worked out:
Disclosure: Cramer’s Charitable Trust owns stock in Morgan Stanley.
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