Dividend Portfolio for Beginners (or in my case starting over)
 |
| Cool sunsets in June |
I sat on the cash for
what seemed like forever waiting for a good day to buy. As luck would have it Brexit happened and I
was actually paying attention to the news.
I figured I would watch the markets the day the vote happened and wish
for the best (big drops across the board).
For most people days like that are not good as they watch their money
vanish. For those wishing to pursue
dividend growth investing, it is like winning the lottery.
I bent my screen a
little and accepted some stocks that weren't quit yielding 3% at the time but
still are great stocks to own. I didn't
plan on it but oddly enough it is a balanced portfolio according to my Quicken
Portfolio X-Ray data (from Morningstar.)
It compares my portfolio with the S&P 500 as a benchmark.
In my list below at
the bottom are some sums and averages for the various data points I chose to
show you all. I do believe in dividend
growth (and looked at the chowder rule when buying these). However, I believe initial dividend yield is
a key factor to starting the compounding snowball. It is easier to pick a long paying dividend
growth stock at 3%+ then guess at which 1% yielder will continue to grow and
get to the level these guys are at (and with staying power.)
The new portfolio has boosted my monthly dividend income by $57. Previously I was averaging $139 from
my IRA and now my forward dividend income will be $196 per month. This is after paying any fees for selling
stocks and transferring them to my new IRA. Also not that it matters too much for DGI'ers but this portfolio is already up 3.76% in a little over a month. Not to bad for those slow growing mammoths.
I know there are some slow growers in there but what
do you all think of my picks? Good
starters? Would you recommend them to
beginners?
Happy saving and investing,
Dividend Family Guy
Happy saving and investing,
Dividend Family Guy
Pretty great list of companies you have here. I like your thinking about starting your portfolio ~3% to kick start the compounding rather than hope some of the low yielding stocks continue their high growth rate. I am new to DGI so I look forward to following your journey and browsing your website some more!
ReplyDeleteThanks Millennial Budget. There are allot of great dividend screens out there. SureDividends has a good one as well as pretty much any dividend blogger. Everyone has there own style but the goal is still the same. Let the dividends roll in!
DeleteCheers,
DFG
Solid, DFG. I like a tilt towards current yield in the current environment so I think you nailed it.
ReplyDeleteThanks Raptor. Current yield is a fact, future growth a hope. Thanks for stopping over.
DeleteCheers,
DFG
Nice buy list DFG, really good strategy to make use of any volatility - you nailed the timing! Many of them should be good for many years to come, awesome job.
ReplyDeleteTristan
Hey Tristan,
DeleteI attribute the timing mostly to luck. Just had cash at the right time. I have learned it is always good to keep some buffer/cash at hand for days like that.
Cheers,
DFG
Hi DFG,
ReplyDeleteI like the list, especially as I bought MCD recently. Congrats on your recent re-org and it looks like a better foundation going forward!
I'm still a little concerned about Emerson, although I'm glad that they decided to sell and not spinoff the former Network Power division (where I used to work). I don't need another stock showing up in my portfolio! I just hope they can find something good to do with the proceeds - I'm quite tempted to sell to be honest but the current dividend is certainly nice.
Best wishes,
-DL
Yeah I don't think their dividend is going anywhere. As long as it keeps growing I will be happy. Just the other day I noticed they have an office down the road from my work. Small world.
DeleteLater,
DFG