Jim Cramer’s top 10 high-yield stocks to benefit from Biden’s tax hikes.

President Joe Biden’s recently announced plans to levy investment profits have investors on their toes. Thankfully, though, CNBC’s Jim Kramer proposed a strategy on Tuesday that can help in steering clear of the higher taxes.

“If you’re worried about Biden’s plan to raise taxes on capital gains but not on dividend income, there’s no reason to sell everything. It’s a reason to buy dividend-paying stocks,” says the host of Mad Money.

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Biden wants to raise tax on capital gains to 39.6% from the current 20% – a plan that is likely to go live as early as this week. For the richest taxpayers, the rate might even go up further to 43.4%. If the dividend rate, on the other hand, stays unchanged at 20%, that will make investing in dividend stocks a more lucrative option, as per Cramer.

The Mad Money host also added on Tuesday:

“Biden’s plan would create a world where every dollar of dividend is worth $ 1.32 in capital appreciation. As long as many wealthy investors worry about this tax hike, expect investors who want to pay less tax to start trading for dividend-paying stocks.”

Based on why they make dividend payments and the philosophy at large, Cramer picked the following top 10 high-yield stocks that could benefit from Biden’s tax plan.

6.8% yield. AT&T implemented cost cuts last year, resulting in a sharp growth in earnings.

6.35% yield. Kinder Morgan reported eye-popping results last week and had a modest dividend boost.

5.0% yield. A fantastic operator with an intellectual CEO, as per Cramer.

4.7% yield. Cramer’s charitable trust bought the stock in late 2019 that resulted in remarkable gains.

4.6% yield. Cramer said that the stock has always been safe, he’s just pointing it out now.  

4.5% yield. After a darn good performance in the recent quarter, Cramer sees this stock as a fantastic buy.

4.25% yeild. While there is scepticism about its long-term viability, Cramer said there are good malls and bad malls, and Simon has the best ones.

4.0% yield. Big pharma company making big money out of COVID-19 vaccines.

4.02% yield. LyondellBasell is expected to report £9.35 of earnings per share, more than 100% year over year growth.  

Only 2.9% yield, but Crown Castle boasts massive growth opportunities and is a great pick for growth investors.