6 Climbing High-Yield Dividend-Paying Stocks

NEW YORK (TheStreet) -- Most self-directed investors should categorize stocks into two primary columns. Column A is dividend-paying stocks, and column B is every other stock that you're not going to buy.

Granted there are a select few that come along every now and then that can be considered for shorter-term capital appreciation, but otherwise sticking with dividend payers is more likely in the long run to increase your portfolio.

Dividend-paying company executives understand they must stay aggressive each quarter or risk being forced to cut the dividend (and upset investors). I believe it's the "in your face" number hanging out there that keeps the team relatively more focused than a company that doesn't pay a dividend. A team focus on bolstering earnings is synonymous with rising share price.

Many investors make the mistake of believing we continue to live in the world of old-school investing. In days gone by, if you wanted a stable high-yield dividend, you bought utilities as a retirement income vehicle.

Today with computers and online access, large and small investors can find dividend-paying companies increasing in price. Having your cake and eating it too is more possible than ever.

Obviously not every dividend-paying stock rising in price is a buy; consequently I search for those that offer a favorable risk-to-reward. Take a look and see if you agree.

CAG Dividend Yield data by YCharts

Conagra Foods (CAG)

Background: ConAgra Foods has transformed itself into an industry-leading, branded and value-added food company.

52-Week Range: $23.64 to $30.55

Price to Book: 2.7

Earnings Payout Percentage: 63%

Conagra Foods pays $1 annually in dividend payments. The yield based on a recent price is about 3.3%.

Not surprisingly, the last reported short interest is only 1.6% of the average trading float. Short sellers are the smart money, and with shares now trading near $30, most of the short sellers are under water.