The World's Best Dividend Portfolio

• Report this Comment On August 20, 2011, at 8:06 PM, dallis1948 wrote:

  I like the title of your article. Many of us seek that illusive portfolio. I recognized several of your holdings as some of the same ones I have. I am retired which means I am interested in durable dividends AND protecting my savings. I split my investments between a Traditional IRA and a Roth IRA. It seems to make sense to place certain investments in one account and another group of stocks in the other account.

  I must admit that the separation idea came from an article or two that I read. The idea is to hold my most growth oriented stocks in the Roth and to draw first from my Traditional account, thereby allowing growth in my pre-taxed account. When I chose to follow that mix, I realized that my portfolios were just reversed. Thanks to the recent mini-meltdown, I was able to sell & buy several of my shares into the appropriate accounts. Others were bought in April, 2009 and will hopefully not see such low prices again in my lifetime. :>) Those high-yielders will stay where they are.

  I see Utilities, Telephones, and Tobacco companies as my "Dividend Producers with low growth". They go into my Traditional account. I see some phone companies as having good growth potential, so I hold some phone companies in both portfolios. For the most part, large caps fill my Roth portfolio.

  I do require a good dividend in whatever I buy. Between both portfolios, my average dividend is 6.2%. My poorest yielding company is Exxon, yieding 3.19%, followed by Kimberly Clark at 4.41%. Like you, I hold a little Annaly. It is my highest yielder (15.16%); it is followed by Reynolds Tobacco (11.01%) and Altria (9,34%). Almost everything else yields in the 5.5% to 6.5% range. This has been as a result of my attempt to hold stocks that fluctuate in price less than most and yet offer above-average dividends. I don't expect to hold them forever, but I do want to hold them as long as profitable in relation to the competition.

  I don't mind holding a stock whose price is falling. I set a stop order that covers my purchase price and selling cost. As the price drops through my sell order, I watch for signs that it is headed upward again and then re-buy at a price below that at which I previously owned the stock. This way I am holding a portfolio of low priced, good dividend stocks. The risk I take is that the falling price may reach my sell target and the go back up before I can re-buy. So far, that rarely happens and I make sure I am watching an alternative stock to buy in that case.

  I, too, hold Vodaphone, having bought it low,$17.80, for its international exposure and share in Verizon Cellular. I see that Verizon may be buying Vodaphone's share of the cellular business, and am sad to see them lose that exposure. I bought some Verizon to keep that cellular exposure and an equal amount of AT&T to benefit from their combined business with that i-computer company that I CAN'T AFFORD. LOL!

  I hold stock in 22 different companies, not 10 like you, but my mix looks very similar to yours. so, I will enjoy watching your results and wish us both lasting dividends.

• Report this Comment On August 23, 2011, at 1:42 PM, jerryrun9 wrote:

  I also hold a couple of these stocks in a dividend portfolio. I'll be watching for your updates and thanks for the input!

• Report this Comment On August 26, 2011, at 10:18 AM, gimponthego wrote:

  I'll be awaiting the updates as well. I have a very vested interest, having tripled the $10,000. We'll see how 30K does with just this group. I'll have my own figures. We'll see how they stack up with yours.

  All purchased Friday, August 19th, 2011/ GLTUA!!

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