These 11 newly increased dividend stocks, according to Jim Cramer, should be bought by investors.
- On Thursday, Jim Cramer presented investors a list of dividend stocks with recently increasing yields that he feels purchasers should consider adding to their portfolio.
- "You want plenty of dividends that are also safe," the "Mad Money" host explained. "The easiest method to determine a dividend's safety is to look for firms who have recently increased their payouts."
On Thursday, Jim Cramer presented investors a list of dividend stocks with recently increasing yields that he feels purchasers should consider adding to their portfolio.
Dividends, according to the "Mad Money" host, are a "unassailable defence against a volatile market," which means they can be appealing additions to the portfolio of an investor concerned about Russia's invasion of Ukraine, soaring inflation, and Covid fears that have roiled the market in recent weeks.
"You want a lot of dividends that are also safe," Cramer explained. "The greatest way to judge a dividend's safety is to look for firms who have recently increased their payouts, since that's the ultimate show of confidence in the future." "Plus, with interest rates rising, only dividend boosters will be able to compete on the bond market," he added.
Only firms that grew dividends by more than 20% this year were included in Cramer's list, which he called the "largest dividend raisers of 2022 thus far." Using this criterion, he whittled down the S&P 500's hundreds of stocks to just 27, then to only 11 stocks that he believes can outperform inflation and be good additions to buyers' portfolios.
Here is the list:
- Pioneer Natural Resources
- Coterra Energy
- Devon Energy
- Tractor Supply
- Best Buy
- Dollar General
- NXP Semiconductors
- Wells Fargo
- American Express
"I don't want you to overthink it when the Fed tightens to combat excessive inflation — you want to circle the waggons around firms who are aggressively growing their dividends," Cramer said.