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
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Busines...
-
The one knock against this midstream company is its higher risk profile compared with its peers. It has been working to address that issue b...
-
I love buying dollar bills for $0.80. Of course, you don’t find many chances like that in the stock market. Whenever such a great deal arise...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
-
Utility stocks were supposed to be yesterday’s favorite investment. The theory regarding utility stocks was simple: Robust economic growth c...
0 comments
Post a Comment
Post a Comment