The World's Best Dividend Portfolio

The latest news on these dividend dynamos.

May 29, 2014 at 6:37PM

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


Awilco Drilling






CorEnergy Infrastructure






Philip Morris International












Ryman Hospitality






Plum Creek Timber (NYSE:PCL)






Brookfield Infrastructure Partners (NYSE:BIP)












Retail Opportunity Investments






Gramercy Property Trust










Dividends Receivable




Original Investment




Total Portfolio




Investment in SPY (including dividends)



Relative Performance (percentage points)



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

The total portfolio is now up 34.3% after climbing a strong 4.8 percentage points since the last report. Dividend and value stocks have performed well, but we also have some specific catalysts that are propelling the performance here (more later). We're now down on the index by 8.9 percentage points cumulatively -- after gaining 2.6 percentage points since the last report. The blended yield slipped to 6.2%.

We have had a number of transactions in the last few weeks. I think these will help the portfolio perform extremely well over the next few years. In last week's column I posted what I think are the top five stocks for the portfolio and how they could perform over the next year or so.

Some of the recent outperformance is due to Extendicare, which comprises over 18% of the current portfolio. The stock has moved up recently as it nears its self-announced June due date for clearing up the ongoing government investigation of its American unit. That would precede any sale of the American business, for which the company appears to have a buyer. This remains my top position in the portfolio because of the low price we're paying for the American business.

You may notice the cash balance way up. That's due to my announced sale of National Grid (NYSE:NGG), which, by my calculations, was pricing in less than 10% annual growth. As I noted in last week's column, I think the portfolio has a number of positions that could return over 20% annually for a number of years. If the price were to decline substantially from here, I'd be inclined to buy the stock again.

For now, though, we have over $1,500 in cash in the portfolio. I'm looking at a couple ideas that I think will be outperformers over the next few years. As always, I'll let you know in this column what I decide.

Dividend announcements
Dividend news:

  • Plum Creek went ex-dividend on May 14 and pays out $0.44 per share on May 30.
  • Exelon went ex-dividend on May 14 and pays out $0.31 per share on June 10.
  • Brookfield Infrastructure went ex-dividend on May 28 and pays out $0.48 per share on June 30.
  • Extendicare went ex-dividend on May 28 and pays out $0.0362 per share on June 16.

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; 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.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That’s beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor’s portfolio. To see our free report on these stocks, just click here now.

Jim Royal owns shares of Brookfield Infrastructure Partners, Gramercy Property Trust, Philip Morris International, Plum Creek Timber, Retail Opportunity Investments, Ryman Hospitality Properties, and Seaspan. The Motley Fool recommends Brookfield Infrastructure Partners, National Grid, and Retail Opportunity Investments. The Motley Fool owns shares of CorEnergy Infrastructure Trust, Extendicare, Gramercy Property Trust, Retail Opportunity Investments, Ryman Hospitality Properties, and 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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