Dividends4Life: A High-Yielding Income Portfolio Based On 6 Stocks With An Average Yield Of 6.5%

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I have developed a small portfolio consisting of only six stocks with an average starting yield of 6.5% for not too fearful investors. 50% of the portfolio is based on two rather fool-proof dividend growers with a minimum risk for dividend cuts anytime soon ("Safe Income Providers"). The other half comprises four stocks from the commodity sector ("Dividend Yield Boosters"). Each one yields close to or more than 7% which signals a certain risk that the market does not consider the dividends to be super-safe. The dividends provide income or can be reinvested which is what I intend to do with the distributions.

The six stocks are AT&T (NYSE:T), Philip Morris (NYSE:PM), Shell (NYSE:RDS.A), Potash Corp. (NYSE:POT), BHP Billiton (NYSE:BBL), and Rio Tinto (NYSE:RIO). T and PM each represent 25% of the portfolio and provide a safe and growing income stream. 12.5% of the capital is allocated to each of the others. Their yields are higher, and although I think that the companies are well prepared to master a period of depressed commodity prices, the risk for dividend cuts cannot be neglected. The current overall dividend yield is 6.5%. I already own four of the stocks and intend to build up positions in the remaining ones on days of market weaknesses.

Source: Seeking Alpha

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  1. Jewish Mainer // November 2, 2015 at 11:29 AM

    I love this idea.

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