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Help me build a dividend stock portfolio
10-31-2008, 08:05 PM
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#1
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Confused about dryer sheets
Join Date: Aug 2008
Posts: 8
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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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10-31-2008, 08:11 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 1,224
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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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10-31-2008, 08:15 PM
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#3
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Confused about dryer sheets
Join Date: Aug 2008
Posts: 8
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Quote:
Originally Posted by DblDoc
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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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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10-31-2008, 08:38 PM
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#4
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Moderator Emeritus
Join Date: May 2007
Posts: 12,894
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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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10-31-2008, 08:59 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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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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10-31-2008, 11:03 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Aug 2006
Posts: 1,558
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I'll try--
MO, USB, PG, GE, KO, O, NUE, JNJ, MMM, MSFT
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11-01-2008, 12:03 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,708
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EMR, GE, ITW, JNJ, KIM, KO, MMM, PG, SYY, WRE
which is very close to my actual portfolio
__________________
learn, work, save, invest, fire
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11-01-2008, 12:12 AM
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#8
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,856
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Quote:
Originally Posted by JockStrap
thanks, however, I'm past the 101 stage.
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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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11-01-2008, 08:21 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Location: yonder
Posts: 2,851
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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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11-01-2008, 08:37 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: Houston
Posts: 1,448
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Just buy VEIPX and be done with it.
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11-01-2008, 08:54 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Nov 2005
Posts: 1,595
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Quote:
Originally Posted by soupcxan
Just buy VEIPX and be done with it.
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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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11-01-2008, 09:04 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Posts: 2,068
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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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"We do not inherit the earth from our ancestors, we borrow it from our children.
(Ancient Indian Proverb)"
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11-01-2008, 09:53 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 2,842
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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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But then what do I really know?
https://www.early-retirement.org/forums/f44/why-i-believe-we-are-about-to-embark-on-a-historic-bull-market-run-101268.html
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11-01-2008, 01:09 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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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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11-01-2008, 02:07 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,330
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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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11-01-2008, 05:29 PM
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#16
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Confused about dryer sheets
Join Date: Aug 2008
Posts: 8
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thanks to all who have contributed
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11-01-2008, 05:46 PM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
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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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Retired 3/31/2007@52
Investing style: Full time wuss.
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11-01-2008, 08:36 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Apr 2007
Location: west bloomfield MI
Posts: 2,223
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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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11-01-2008, 08:40 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,203
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op: have you been watching too much Cramer lately?
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11-02-2008, 08:15 AM
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#20
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Full time employment: Posting here.
Join Date: May 2007
Posts: 982
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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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