I tend to invest in stocks with LESS than 6% yield: that seems to be the level where a higher yield is offered because the company's performance is too weak to hold the price up by itself.
On the high end I like:
HCP, the largest medical property REIT, has increased dividends for 29 straight years and is paying the highest yield of the S&P Dividend Aristocrats at 5.7%. When REITs crashed harder than the market avg. in 2008-9, HCP wasn't hit hard and bounced back to an all-time high in a couple years.
The current dividend is only 72% of FFO (REIT equivalent of cash flow) which means the dividend is very stable and it will almost certainly continue to grow.
On low end, I like a combination "growth and income" stock like:
Emerson Electric has increased dividends for 57 consecutive years and pays a 2.7% dividend. That's not a phenomenal yield, but EMR has increased earnings an avg. 11% per year the last 5 years and is projected to increase them 9% per year for the next 5 years - and it's a stable, steady-growth company where the projections are likely to be on target. At a trailing P/E of 22.9 it should provide a market avg. or better return over the next 5 years.
Copyright © 2014 Microsoft. All rights reserved.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.