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
Related Articles:
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- 9 Dividend Stocks With A 10%+ Dividend Growth Rate
- 3 Styles Of Successful Dividend Investing
- Why Dividend Growth Stocks Are Evil
A High-Yielding Income Portfolio Based On 6 Stocks With An Average Yield Of 6.5%
Posted by D4L | Tuesday, October 27, 2015 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
I love this idea.