The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: hybrid on September 23, 2013, 01:15:47 PM
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I'm looking at changing up part of my portfolio and buying a range of high dividend stocks in different industries. So for those who own and/or like these, what are your favorites? Please no more than five or so, and preferably in different industries (not five utilities, for example). Thanks!
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BP
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VIG
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Dominion Resources and you can buy it through the reinvestment program.
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Nna, oln and perhaps ston if you want to deal with a k1.
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For diversifying, and for getting high dividend, why not pick a high dividend focused index fund, instead of only 5 stocks? This is a good post on the MMM blog that talks about it: http://www.mrmoneymustache.com/2012/01/02/guest-posting-the-dividend-aristocrats/ (http://www.mrmoneymustache.com/2012/01/02/guest-posting-the-dividend-aristocrats/)
It specifically mentions SDY. This fund specifically picks only stocks that have increased their dividends for the past 25 years, every year. I think that's pretty good. The vanguard equivalent looks to be the high dividend yield index (VYM), or VIG as already mentioned.
If you still want to just do a few stocks, and not an index fund, I'd simply look at the holdings of these funds, and find the ones that overlap, such as johnson and johnson, chevron, at&t, etc., and go with those.
@brewer12345 STON has a 10% yield?! Sounds great, but how sustainable is that? Or how long has it been that way? Or rather, why is it that high? Curious.
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For diversifying, and for getting high dividend, why not pick a high dividend focused index fund, instead of only 5 stocks? This is a good post on the MMM blog that talks about it: http://www.mrmoneymustache.com/2012/01/02/guest-posting-the-dividend-aristocrats/ (http://www.mrmoneymustache.com/2012/01/02/guest-posting-the-dividend-aristocrats/)
It specifically mentions SDY. This fund specifically picks only stocks that have increased their dividends for the past 25 years, every year. I think that's pretty good. The vanguard equivalent looks to be the high dividend yield index (VYM), or VIG as already mentioned.
If you still want to just do a few stocks, and not an index fund, I'd simply look at the holdings of these funds, and find the ones that overlap, such as johnson and johnson, chevron, at&t, etc., and go with those.
@brewer12345 STON has a 10% yield?! Sounds great, but how sustainable is that? Or how long has it been that way? Or rather, why is it that high? Curious.
Oh, I plan on having more than five stocks, I just did not want a post from someone with 50 suggestions, I really just want the five or so favorites of others for me to research.
Missus and I already have a lot of eggs in the equities basket via our 401Ks (which are in funds that mirror the S&P 500), this is money on the side that I take a little more risk with. 33% return in 2011, 12% in 2012. But only 5% so far this year, a few significant poor choices on my part (AAPL at 504...). Still, I'm happy with my results over time.
I figure if there are some folks who have leveraged dividend stocks well, I will find them on these forums.
Thanks to everyone for the input so far. Looks I have my lunch hour mapped out for today.
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For diversifying, and for getting high dividend, why not pick a high dividend focused index fund, instead of only 5 stocks? This is a good post on the MMM blog that talks about it: http://www.mrmoneymustache.com/2012/01/02/guest-posting-the-dividend-aristocrats/ (http://www.mrmoneymustache.com/2012/01/02/guest-posting-the-dividend-aristocrats/)
It specifically mentions SDY. This fund specifically picks only stocks that have increased their dividends for the past 25 years, every year. I think that's pretty good. The vanguard equivalent looks to be the high dividend yield index (VYM), or VIG as already mentioned.
If you still want to just do a few stocks, and not an index fund, I'd simply look at the holdings of these funds, and find the ones that overlap, such as johnson and johnson, chevron, at&t, etc., and go with those.
@brewer12345 STON has a 10% yield?! Sounds great, but how sustainable is that? Or how long has it been that way? Or rather, why is it that high? Curious.
Ston is an mlp so it is a full payout vehicle. It owns cemeteries and funeral homes and is poly understood by the market. If I were willing to deal with a k1 I would own it again.
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What do you consider a high yield dividend stock? 3%? 4%? 8%?
Are you looking for ones that are fair to undervalued to buy now or just which are a favorite WHEN they are fair to undervalued.
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I'm taking the following approach... for my diversified investments I go ETFs like the ones above, but for the portfolio that I deem as 'dividend' investments I buy direct shares of big, well known companies.
The aristocrats and other 'high dividend' ETFs still usually yield less than 3%. They hold nice big ones like AT&T, J&J, etc, but I guess there's enough holdings within the ETF that have relatively low dividends that bring the average down below 3. Plus you're paying 0.2%-0.5% annually for the ETF as well. When I buy the direct shares, it's just a simple $5 trade comission and that's it.
However a case can be made for the stable ETFs because even that boring 'less than 3% dividend return' turns very exciting when you hold these investments over a long period of time as dividends and market prices usually go up faster than inflation.
Canadian banks are stable dividend stocks - I like BMO.
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What do you consider a high yield dividend stock? 3%? 4%? 8%?
Are you looking for ones that are fair to undervalued to buy now or just which are a favorite WHEN they are fair to undervalued.
4% and up, and simply asking which ones others in this forum prefer within that group of stocks.
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...but for the portfolio that I deem as 'dividend' investments I buy direct shares of big, well known companies.
That was my thought as well. Perhaps 10 large companies in various industries with dividends at 4% or greater. BP was a perfect example, as was D. But I have nothing set in stone yet, I'm researching for now.
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I own MVO. It's down for last few months, but I'll make it back in the dividend. It does fluctuate. I've already seen it as high as 14% and as low as 9% for different payouts.
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VGR
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good lord look at those dividends! I wonder what % of their profits are used to pay those bad boys.
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What do you consider a high yield dividend stock? 3%? 4%? 8%?
Are you looking for ones that are fair to undervalued to buy now or just which are a favorite WHEN they are fair to undervalued.
4% and up, and simply asking which ones others in this forum prefer within that group of stocks.
My top 5 favs from my portfolio currently yielding 4% and up:
PM
SO
LEG (3.92% not quite at 4%)
DLR
LO
Note: I am not saying I would or wouldn't buy any of these at their current valuations.
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ETFs:
EDIV 5-7%
EWS 4.5%
LVL 6.5%
MLPs:
NTI 14%
CVRR 21%
Stocks:
INTX 9%
M (MURGY) 5%
UVE 4.5%
See my entire mock portfolio at my blog.
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I like individual dividend stocks a lot (currently have 21 in my portfolio). But as an income-focused investor, I also diversify beyond just dividend-paying stocks. I recently wrote a nine page document about this called, "The Insider's Guide to Income Investing." For those interested in reading it, I attached it to this post.
Regards,
The Financial Lexicon
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Here are a couple of my favorites
GPC
BOH
CBRL
omi
Not always the highest yield, but very little debt outside of the Bank of Hawaii.
BOH returns 6-7% a year to shareholders, but more is in buybacks then dividends. Feds aren't really allowing banks to pay more than 30% of net income in a dividend