The World's Best Dividend Portfolio

The latest news on these dividend dynamos.

Jan 15, 2014 at 4:06PM

In June 2011, I invested my money equally in a selection of 10 high-yield dividend stocks. With a year of success behind me, in July 2012, I added even more money to the portfolio, and then more again in 2013. Those names offer triple the yield of the average S&P 500 stock. You can read all the details here. Now let's check out the results so far.


Cost Basis



Total Value








National Grid






Philip Morris International












Ryman Hospitality






Plum Creek Timber






Brookfield Infrastructure Partners






Seaspan (NYSE:SSW)






Retail Opportunity Investments






Annaly Preferred D






Gramercy Property Trust (NYSE:GPT)










Dividends Receivable




Original Investment




Total Portfolio




Investment in SPDR S&P 500

(including dividends)



Relative Performance

(percentage points)



Source: Capital IQ, a division of Standard & Poor's.

The total portfolio is now up 24.1%. We lost ground to the index since the last report, moving down 2.7 percentage points, to lag by 13.8 points overall. But this is a dividend portfolio, and we expect to underperform the market in flush times and outperform when the market goes lower. The blended yield rose to 5%.

That yield's up from 4.5% last week, due almost entirely to the addition of Extendicare, as I announced then. The Canadian/American health-care company pays out nearly 7%, but I've purchased because it also has significant upside as it divests its American unit, either as a sale or a spinoff. How much could that be worth to the company? Think triple-digit gain. That's why I've called Extendicare my stock of 2014. I go into more specifics here.

The blended yield will increase shortly, too, with the dividend initiation at Gramercy Property Trust. The position is already up 30%, and a new dividend should help attract more investors to the company. Currently, Gramercy's 0% yield brings the portfolio average down. The management team has done an excellent job of keeping investors informed of their plans and then sticking to those plans and even overdelivering. I wouldn't be surprised to see the stock continue to rise significantly this year.

And I continue to like Seaspan common stock. Seaspan has been one of my best-performing stocks thus far, and I think the good times will continue. I expect the company to increase the dividend at the end of Feb. or the start of March, and I think it'll bump it by 20%, helping to move the stock to $25 per share. That would put its free-cash payout ratio around 50% as it continues to build out its fleet. This is still a great pick, and I fully expect this stock to drive our blended yield higher.

So there you have three great stocks that are helping to propel this portfolio forward.

Dividends and earnings announcements
Dividend news:

  • Vodafone went ex-dividend on Nov. 20 and pays out $0.562 per share on Feb. 5.
  • Ryman went ex-dividend on Dec. 24 and paid out $0.50 per share on Jan. 15.
  • Philip Morris went ex-dividend on Dec. 23 and paid out $0.94 per share on Jan. 10.
  • National Grid went ex-dividend on Dec. 6 and pays out about $1.17 per share on Jan. 22.

All that, of course, means more money coming into our pockets.

It's fun to sit back and get paid, and with the market volatility, we might have a good chance to reinvest those dividends at good prices. Europe continues to be an absolute mess, and continued bad news will likely have stocks plunging again, and if they do, I'll be inclined to pick more shares up.

Foolish bottom line
I've been a fan of big dividends for a while, and I think this portfolio will outperform the market over time through the power of dividends. As I promised in the original article, I'll continue to track and report on the portfolio's progress, including news on these companies.

If you like dividends, consider the 11 tickers above, along with the nine names from a free report from Motley Fool's expert analysts called "Secure Your Future With 9 Rock-Solid Dividend Stocks." Today, I invite you to download it at no cost to you. To get instant access to the names of these nine high-yielders, simply click here -- it's free.

Jim Royal owns shares of all 11 companies listed in the table and Extendicare and has the following options: long May 2014 $22 calls on Seaspan and short May 2014 $30 calls on Seaspan.The Motley Fool owns shares of Extendicare, Gramercy Property Trust, Retail Opportunity Investments, Ryman Hospitality Properties, and Seaspan and has the following options: long May 2014 $22 calls on Seaspan and short May 2014 $25 calls on Seaspan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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