Patience pays with these 2 stocks

A couple of slow-moving telecoms are finally hitting 52-week highs. With dividends that rival those of utility companies, they are still worth buying.

By Jim Cramer Sep 28, 2010 8:33AM

jim cramerBy Jim Cramer, TheStreet

 

At last, patience is being rewarded. For the longest time, whenever I was asked about stocks, which ones to buy, I almost always answered Apple (AAPL), Verizon (VZ) or AT&T (T). My thinking was that I wanted to have a high flier I believed in, a low flier I trusted.

 

Apple has been nothing but net forever. Just a huge win that keeps on giving, and you know I think it will get to $325 pretty easily. (That's been my price target, and I wish that people on Twitter would subscribe to RealMoney and ActionAlertsPlus so they wouldn't keep asking me if I still like it. I don't answer the question.)

 

But Verizon and AT&T? Good grief, these two have taken forever to move. At least you could reinvest the dividend, making them the ultimate pay-you-to-wait equities.

 

Now here they are, both hitting 52-week highs, up 26% and 15%, respectively, year over year. I know it may seem like I am being greedy, but I would still buy them, because Verizon yields 5.9% and AT&T yields 5.78% and, to me, their dividends are every bit as safe as, if not better than, most of the utilities people buy instead.

Verizon has completed a huge build-out and is having success with FiOS, even if Wall Street has pooh-poohed the effort. AT&T has the iPhone, and it is so great that people are willing to put up with spotty service to have it.

 

Both are benefiting from a better business tone in the country -- something I think is happening, even if the media doesn't -- because it can offset the deactivation of landlines by individual households.

 

The payouts are easily made. And raised.

 

The two stocks can easily trade to a 5% yield flat.

 

And I think that they will.

 

Patience, at last, rewarded.

 

At the time of publication, Cramer was long AAPL.

 

Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.

 

Click here to follow Cramer's Charitable Trust trades.

 

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