Recs

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5 Dividend-Paying Stocks the Smart Money Loves

Let’s face it, not all of us have time to do exhaustive research to unearth great stocks like Praxair (NYSE: PX  ) or PACCAR Inc (NYSE: PCAR  ) . 

But that doesn’t mean we can’t follow and utilize the work of other smart investors.  One way to do this is to track the stock picks of All-Star investors in CAPS, The Motley Fool’s interactive stock-rating database. 

All-Stars have a ranking of 80+ out of 100, meaning their picks are outperforming 80% of the more than 60,000 rated CAPS members (and all of the unrated players). The top players have accuracy levels well over 60%, while some are so good they have received media attention, so it pays to follow what they do.  

We can easily search for their top picks using the handy CAPS screener, using these factors:

Our search returned the following:

Company Name

CAPS Rating (5 Max)

Current Dividend Yield

All-Star Outperform Picks

Insider Ownership

Asta Funding (Nasdaq: ASFI  )

****

2.1%

105

20.6%

bebe Stores (Nasdaq: BEBE  )

**

2.0%

131

72.0%

Cherokee (Nasdaq: CHKE  )

****

8.4%

109

15.5%

D.R. Horton (NYSE: DHI  )

*

2.2%

112

12.6%

Nordstrom (NYSE: JWN  )

**

2.2%

109

26.3%

Source: Motley Fool CAPS, as of Sept. 29.

You should always make the final decision on your investments, but it feels a whole lot better knowing a lot of other smart people are on your side. Feel free to use the CAPS screener to find some more potential winners.

On Oct. 7, 2008, Fool Co-Founder David Gardner and his Motley Fool Pro team will invest $1 million in a portfolio designed to help you make money in any market. In the coming weeks, the team, relying heavily on proprietary CAPS "community intelligence" data, will establish long and short positions in a broad range of securities, including common stocks, publicly traded put and call options, and exchange-traded funds (ETFs). To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

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Fool Analyst Andrew Sullivan does not have a financial position in any of the stocks mentioned in this article. PACCAR is a Motley Fool Stock Advisor recommendation. The Motley Fool has a disclosure policy.


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Related Tickers

5/24/2012 4:07 PM
DHI $17.15 Up +0.28 +1.66%
D.R. Horton, Inc. CAPS Rating: *
JWN $50.45 Up +0.21 +0.42%
Nordstrom, Inc. CAPS Rating: **
PX $108.78 Up +0.43 +0.40%
Praxair, Inc. CAPS Rating: ****
ASFI $8.88 Down -0.10 -1.11%
Asta Funding, Inc. CAPS Rating: **
BEBE $6.15 Up +0.06 +0.99%
Bebe CAPS Rating: *
CHKE $11.50 Up +0.20 +1.77%
Cherokee, Inc. CAPS Rating: ***

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