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Help me build a dividend stock portfolio
Old 10-31-2008, 09:05 PM   #1
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Help me build a dividend stock portfolio

What 10 individual stocks would you pick to create a well diversified portfolio?

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Old 10-31-2008, 09:11 PM   #2
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10 stocks would be an incredibly non-diversified portfolio.

Go to the FAQs for suggestions on reading and answers to many basic investing questions.

DD
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Old 10-31-2008, 09:15 PM   #3
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10 stocks would be an incredibly non-diversified portfolio.

Go to the FAQs for suggestions on reading and answers to many basic investing questions.

DD

thanks, however, I'm past the 101 stage..This is the fun money part of my portfolio...looking for 10 solid dividend payers..anyone?
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Old 10-31-2008, 09:38 PM   #4
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Since you are past 101 stage, I'll let you build a diversified portfolio. But a few names with a history of reliable (and increasing) dividends: General Electric, Johnson and Johnson, Procter and Gamble, Exxon Mobil, Pfizer, Walmart, Home Depot, US Bank...
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Old 10-31-2008, 09:59 PM   #5
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Why bother with those 10 stocks of FIREDreamer since they read like the top 10 of the S&P500? Why not just go out and buy 10 different ETFs you like? You can start with SPY.
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Old 11-01-2008, 12:03 AM   #6
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I'll try--

MO, USB, PG, GE, KO, O, NUE, JNJ, MMM, MSFT

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What 10 individual stocks would you pick to create a well diversified portfolio?

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Old 11-01-2008, 01:03 AM   #7
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EMR, GE, ITW, JNJ, KIM, KO, MMM, PG, SYY, WRE

which is very close to my actual portfolio
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Old 11-01-2008, 01:12 AM   #8
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thanks, however, I'm past the 101 stage.
It reminds me of the old joke about starting with a 401(k) and having a 101(k).

How 'bout the ten largest holdings in the ETFs DVY (Dow dividend), PID (Powershares International Dividend), and IJS (S&P600 Small-cap Value)...
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Old 11-01-2008, 09:21 AM   #9
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I was going to start this thread.

I owned (and still own) the ETF, DVY, which was hammered, in part, because it became top-heavy with financial stocks and took a terrible hit. I wondered if I could do some kind of reasonable job putting together a basket of decent yielding stocks. Now I'm going to find out.

The stocks I've started with are:

SYY; UTX; NUE (that's Sysco, United Technologies and Nucor). I plan on adding ITW and EMR (Illinois Tool Works and Emerson Electric). The stocks mentioned above all pay something slightly north of 3%. That may not sound like much, but historically that's about twice what they usually pay out.

Two other stocks I own exclusively for their yields and are much riskier than the ones already mentioned:

WRI: Weingarten Realty which is currently paying 10% and NLY:Annaly Capital which is paying 13.8% I've owned these two for awhile and it's just a greed thing. I wouldn't recommend either of them.

Many of the other stocks that I am interested in have already been mentioned in the previous posts.
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Old 11-01-2008, 09:37 AM   #10
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Just buy VEIPX and be done with it.
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Old 11-01-2008, 09:54 AM   #11
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Just buy VEIPX and be done with it.
VEIPX is currently yielding 3.79% taxable according to VG. This is surprisingly low considering that you can get 3.74% federal tax-free with VG's Limited-Term Tax-Exempt Fund. Of course, there are lots of factors to consider, so this alone doesn't make VEIPX a bad investment. If the stock market booms, you could get a nice bounce in VEIPX considering how badly it has been hammered the last few weeks.
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Old 11-01-2008, 10:04 AM   #12
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Most of my suggestions have already been named.
I would add DEO. Especially for diversification as it is a good solid foreign company.
If the InBev-Bud deal falls through, I would add BUD after the crash in BUD stock price.
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Old 11-01-2008, 10:53 AM   #13
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If I was to pick 10 stocks diversified as a portfolio, I would want a combination of very secure large company dividend stocks with solid prospects for dividend growth along with a few more speculative plays with a target of 4 percent toal yield.

The following are all DJIA stocks with a Value Line rated of "1" for safety and the following dividend yields and VL expected dividend growth rates, This would comprise 80 percent of my dividend portfolio:
KO - Coca Cola Enterprises 3.45 - 7%
MCD - Mc Donalds 3.53 - 16%
HD - Home Depot 3.82 - 9%
JNJ - Johnson and Johnson 3.00 - 8.5%
T - AT&T 5.98 - 11.5%
MSFT - Microsoft 2.33 - 18%

This portion of the portfolio would earn 3.685 dividend yield and would provide a portfolio yield of 3 percent even if the remainder of the portfolio would go to zero.

To those I would add 4 stocks that would comprise the other 20% of my portfolio:
FUN - Cedar Fair Amusement 10.38
WRE - Washington REIT 5.77
ABX - Barricks Gold 1.76
ITW - Illinois Toolworks 3.86

This portion of the portfolio would earn 5.44% dividends. The total portfolio yield is 4.0365% which should also grow faster than inflation.
The one possible change I could see made is to swap out Astoria Financial AF 5.47% yield for Cedar Fair amusement park, this drops total portfolio yield to 3.8 percent --below my preset target.
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Old 11-01-2008, 02:09 PM   #14
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FWIW the Nov 5th Standard and Poor's The Outlook has a suggested list of dividend stocks across 10 sectors. I read it online free from my broker, but it is also usually available in your local library. It has CTL as one of the picks with an 11% yield.
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Old 11-01-2008, 03:07 PM   #15
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Ok, Heres my take

Large Cap - MO, PMI, KFT, SSL, PFE, GE

REIT - AMY, SPPR

MLP - EVEP

CANROY - BTE

I own them all.

Jim
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Old 11-01-2008, 06:29 PM   #16
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thanks to all who have contributed
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Old 11-01-2008, 06:46 PM   #17
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One more for you. Exxon has been mentioned a lot, but you might take a look at Chevron. Pays a higher dividend than Exxon. Currently yielding 3.5% but just a few days ago it was above 4%. And it may be in that range again soon.

http://www.valueline.com/dow30/f1936.pdf
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Old 11-01-2008, 09:36 PM   #18
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My thought is if I was using individual stocks I would have 3 tiers of dividends

1) stable- around 5-8 stocks similar to the question you originally posed. This would be half the dollar amount of the total investment.
2) REITs, utilities and a foreign stock or two- any other high yield entity, double the number of stocks above with 25% of the investment
3) small caps and mid caps which pay a dividend. The goal here is more capital appreciation that yield, but all holdings need to pay a dividend. ALD would be a good example (granted I have not looked at the stock in a long time, but it is a mid cap stock which used to pay a high dividend. Again 2X the number of stocks with 25% of the total investment.
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Old 11-01-2008, 09:40 PM   #19
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op: have you been watching too much Cramer lately?
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Old 11-02-2008, 09:15 AM   #20
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Some that I own: GE, SO, PFE, MO, and two ETFs (VYM, DVY). VYM has less exposure to financials than DVY.
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