As an income investor it is critical that you do the necessary analysis when building your dividend portfolio. Many investors are attracted solely by the dividend yield and end up getting stung. One such example is Dow Chemical Co (NYSE:DOW). This company paid a nice dividend yield back in the mid 2000's but because the company wasn't able to satisfy all 8 points listed above, it had to heavily cut its dividend in 2009 from $0.42 per share to $0.15 per share (63% cut) for 9 quarters straight. This illustrates that you have to do the due diligence on your underlyings to avoid scenarios such as this.
When you have a good dividend yield along with good consistent dividend growth, your portfolio is set up for success. The real message of this article is that capital gains on your stocks is not the critical issue. What we want is increasing income quarter after quarter and we get this by never selling our assets and re-investing our dividends to buy more assets. 4 excellent stocks (Along with Coca Cola) to start your income portfolio (that satisfy all points listed above) would be the following. (NYSE:CVX), (NYSE:MCD), (NYSE:K), (NYSE:MMM).
Source: Seeking Alpha
Related Articles:
- Stocks Providing Positive Feedback With Increased Dividends
- Dividend Growth Stocks With A Defined-Benefit Pension
- 7 Higher-Yielding Stocks With A Low Price To Book
- Don't Forget: Buy And Hold Is Not Buy And Forget
- 5 Stocks With Strong Dividend Growth Metrics
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. A large pa...
-
I love getting paid to invest, which is why I've filled my portfolio with income stocks. My favorites are those that not only pay genero...
-
This is one of our top dividend-paying companies that can help boost the investment income in your portfolio. These stocks are a safe way to...
-
Tracking down a stock that pays a high yield is easy enough to find, but selecting ones that are worth holding onto for decades to come is q...
-
A big worry for retirees isn't necessarily the size of their nest eggs, but whether they'll keep up with inflation. While convention...
-
Not all dividend-paying companies make a lot of money, but the ones that do could fetch you solid returns in the long run, simply because a ...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In some dividend investors' minds, there's no such thing as too much dividend income. Yet often, stocks that carry extremely high di...
-
With so many concerns plaguing investors’ minds, dividend paying stocks are tempting options at the moment. The best dividend stocks pay out...
0 comments
Post a Comment
Post a Comment