Jim Cramer Says These 5 High-Yield Stocks Have His Seal of Approval
CNBC̵[ads1]7;s Jim Cramer on Tuesday offered investors a list of five high-yielding stocks they should have on their shopping lists.
Here is his list:
- Ford
- KeyCorp
- Federal Realty
- Devon energy
- ONE OK
The two-year Treasury yield has recently risen to around 4.3%, a sign that the Federal Reserve will continue to raise interest rates aggressively and increase the likelihood of a recession, according to Cramer.
This has turned some stocks into “accidental high-yielders” and now is the time to buy them, he added. “You want to take shelter in the random high yields because their dividends will give you a cushion.”
To come up with his top picks, Cramer first ran a screen on the S&P 500 to find stocks that are down 30% or more from their respective 52-week highs and yielding 4% or more. Of the more than 50 stocks that met the requirements, the stocks in the list were his favourites.
“They may have more downside here, but I recommend you start buying them here and gradually build a position,” he said.
Disclosure: Cramer’s Charitable Trust owns shares in Ford and Devon Energy.
