Dividend Payers

ripper1

Thinks s/he gets paid by the post
Joined
Mar 26, 2010
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Looking for a high yield diversified portfolio of about maybe 5 to 10 large multi-national stocks that can be kept for the long term and never have to sell. This will be my first foray into buying individual stocks if I have the nerve to do it. This would amount to 5% of my total portfolio and come from my cash reserves. Any suggestions folks?
 
I recommend signing up for a trial issue of the Morningstar Dividend Investor Newsletter
The recommendations are good but even more important is the supplemental issues where he discusses how to evaluate dividend stocks.

Another good source of ideas is to look at the stock portfolio of Vanguard Wellesley and Wellington they have ~60 and 100 stocks respectively and pretty much all of them are large blue chip dividend payers.
 
For high - yield stocks you would never have to sell? That is asking for a lot the best I would offer would be for a group of 5 stocks that held in equal proportion would pay 4 percent or so on average and raise dividends consistently:

MO - Altria
CHV - Chevron
VVC - Vectren
PEP - Pepsi
MCD - Mc Donalds

To this you could add some natural resource or MLP's to gain even a higher dividend but the very long term nature you state makes them not as sure of an investment. One percent of each on a portfolio would not create that much additional risk to your portfolio.
 
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I'm partial to Microsoft at current prices.
 
At the 'right price' :) :
abt
bmy
jnj
bayry
mrk
nvs
kft
nsrgy
gis
cag
cpb
deo
dps
pep
syy
kmb
pg
gpc
hon
intc
apd
ppg
rpm
sjm
ul
un
emr
chg
ed
peg
wec
xom
nsc
ups
trv
 
currently : ABT, AFL, EMR, ITW, JNJ, MDT, MMM, MSFT, PG, SYY
currently (higher risk) : GE
at the right price : ADP, CVX, KO, MCD, UTX, WMT, XOM
 
Have you thought of looking at Preferred Shares instead of common stock?

The benefits are a steady income stream, and that you are above the common in the credit pecking order. This means that the common dividend has to be cut or suspended before the preferred dividend can be touched.

Disadvantages are that Preferred Stockholders have no voting rights; and that the dividend is fixed ( common dividends can go up as the company grows ). And some Preferred Issues ( mostly banks ) have the right to suspend dividends - always good to read the prospectus very carefully.

As with all stock investments, your risk is the demise of the underlying company.

I find that, as long as I look at the income stream, I tend not to be worried with the daily fluctuations of the shares. And I know that, should they be called, I will get more than I paid for them ( assuming I bought below par ).
 
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