4 high-dividend stocks

Looking for cash flow? Your best bet might be high-dividend stocks, which offer much better value right now than fixed-income alternatives.

1 of 5
Finding a safe dividend investment
Finding a safe dividend investment
Consider this: The yield on 10-year Treasuries (3.28%) may be higher than the average dividend-paying stock in the S&P 500 (2.4%), but it comes without the upside of price appreciation or future payout increases. The key to identifying a safe dividend investment is to target companies with abundant free cash flow and low debt ratios. Happily, those qualities are pretty common these days, says Anne Lester, manager of J.P. Morgan's $674 million Income Builder Fund. We surveyed Lester and other top dividend-focused fund managers and identified four stocks with above-average yields, strong balance sheets, and good growth prospects.

NEXT: Bristol-Myers Squibb
Last updated December 20 2010: 2:55 PM ET
All stock prices as of Nov. 30
Investors' fears that a bear market will return (and linger) has made for some bargains - and this group should thrive even if inflation returns. More
Hedge funds, prospectors, even folks with a drawerful of old jewelry - they're all catching it. A dispatch from the zone of contagion. More
Solar, wind, and other green stocks got hammered in the downturn. Now might be a great time to buy. More