Help me build a dividend stock portfolio
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DblDoc
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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
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?
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...
CyclingInvestor
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EMR, GE, ITW, JNJ, KIM, KO, MMM, PG, SYY, WRE
which is very close to my actual portfolio
which is very close to my actual portfolio
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)...
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.
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.
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.
Zathras
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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.
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.
Running_Man
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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.
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.
LOL!
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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.
jimnjana
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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
Large Cap - MO, PMI, KFT, SSL, PFE, GE
REIT - AMY, SPPR
MLP - EVEP
CANROY - BTE
I own them all.
Jim
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Dawg52
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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
http://www.valueline.com/dow30/f1936.pdf
jIMOh
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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.
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.
thefed
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op: have you been watching too much Cramer lately?
Lakedog
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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.
clifp
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My top 10 Dividend stocks
O Realty Income The Monthly Dividends company, super dependable REIT, I bought some for my 83 year old money and never was even the slightest bit nervous.
KMP Biggest and probably best managed MLP owns a thousands of miles of pipelines
BBT Super Regional Bank 107 years of dividends 37 years or raising dividends (one cut during the depression)
WFC Wells Fargo is picking up market share from weaker rivals.
GE 1/3 the price of 2000 with higher earning 4-5x the yield.
BGH Another MLP with rapidly rising distributions a $17/share offer from general partner puts a good floor under the stock
DEO Premier liquor distributor and who couldn't use a drink in these times
PFE 7% yield tons of cash, yes generic competition for Liptor is going to kill profits growth, but itsn't like the market doesn't understand this
INTC raised dividends twice last year 3.5% yield isn't great in this market but above average
SPH Suburban Propane 2.5 year when I bought it the distributions was $2.44 after last weeks increase it is now $3.22 , oh at 9.5% yield who cares if the increase slow down or even stop for a while.
A couple of other picks over at my Motley Fool CAPs contest (I hope this link works)
O Realty Income The Monthly Dividends company, super dependable REIT, I bought some for my 83 year old money and never was even the slightest bit nervous.
KMP Biggest and probably best managed MLP owns a thousands of miles of pipelines
BBT Super Regional Bank 107 years of dividends 37 years or raising dividends (one cut during the depression)
WFC Wells Fargo is picking up market share from weaker rivals.
GE 1/3 the price of 2000 with higher earning 4-5x the yield.
BGH Another MLP with rapidly rising distributions a $17/share offer from general partner puts a good floor under the stock
DEO Premier liquor distributor and who couldn't use a drink in these times
PFE 7% yield tons of cash, yes generic competition for Liptor is going to kill profits growth, but itsn't like the market doesn't understand this
INTC raised dividends twice last year 3.5% yield isn't great in this market but above average
SPH Suburban Propane 2.5 year when I bought it the distributions was $2.44 after last weeks increase it is now $3.22 , oh at 9.5% yield who cares if the increase slow down or even stop for a while.
A couple of other picks over at my Motley Fool CAPs contest (I hope this link works)
freebird5825
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If you are, or know, a preferred M* subscriber, there is a built in screen for the highest dividend yielding stocks already set up there. the results can be found at
Stock Screener: Results of Search
there was no criteria to add for the diversification factor.
clifp
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I forget my customary plug for M* Dividend Investor newsletter the first month is free and definitely worth it. The book by the editor Josh Peters, the Ultimate Dividend Investor handbook, will show a methodology for picking your own dividend stocks.
Some people might think that doing your own research is probably better than asking on an internet forum.
Some people might think that doing your own research is probably better than asking on an internet forum.
Ronnieboy
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Just out of curiosity, do you buy and hold (and spend the dividends) or have you ever sold a whole position to change to something else?
clifp
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I buy with the intention of keeping them forever until something happens that makes want to sell. Which is sort of a mart ass answer but mostly true.
Some examples.
Price raises much faster than the dividend increase and the yield falls to a low level. I sell
I original bought the stock because it was a former growth stock that had fallen on tough. Market decide that it is a growth stock again. Possible example are GE, and INTC in my list of above. I'll sell.
Management changes position on dividends and stops raises dividends. I sell
Bad times hit company dividend cut looks likely I generally sell unless the stock price has already taken a hit.
The M* dividend guy says XYZ is really a great deal. About 1/2 the time I sell something generally with a lower yield to get more income. Of those times I traded up about 1/2 the time it was smart and 1/2 the time it is was dumb.
I should start tracking my portfolio turnover but on average I keep a stock for three years. Now up until the last year, I never had dividend cut. Sadly I've had to deal with about 8 out 40 companies, in several cases like a couple banks stocks I got out well in advance. The other 6 took painful loss on two and am still holding the others.
Some examples.
Price raises much faster than the dividend increase and the yield falls to a low level. I sell
I original bought the stock because it was a former growth stock that had fallen on tough. Market decide that it is a growth stock again. Possible example are GE, and INTC in my list of above. I'll sell.
Management changes position on dividends and stops raises dividends. I sell
Bad times hit company dividend cut looks likely I generally sell unless the stock price has already taken a hit.
The M* dividend guy says XYZ is really a great deal. About 1/2 the time I sell something generally with a lower yield to get more income. Of those times I traded up about 1/2 the time it was smart and 1/2 the time it is was dumb.
I should start tracking my portfolio turnover but on average I keep a stock for three years. Now up until the last year, I never had dividend cut. Sadly I've had to deal with about 8 out 40 companies, in several cases like a couple banks stocks I got out well in advance. The other 6 took painful loss on two and am still holding the others.
