Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The World's Best Dividend Portfolio

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






NorthStar Realty Finance






Philip Morris International (NYSE: PM  )






Extendicare (NASDAQOTH: EXETF  )






Ryman Hospitality






Plum Creek Timber  






Brookfield Infrastructure Partners












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 39.4% after climbing 2.5 percentage points in the last week -- not too bad. We're now down on the index by 9.1 points cumulatively after gaining 1.9 points on a relative basis. Surprisingly, despite an upward market, the portfolio outperformed. The blended yield remained at 6.6%.

As I announced last week, I've added NorthStar Realty Finance to the portfolio. I expect its yield to be a healthy 9% or so at current prices, and that's how I've figured the blended yield for the portfolio. We should get more definitive details on the earnings report on Thursday, Aug. 7. So that's one to watch. In the meantime, my Special Situations portfolio continues to buy more.

We continue to wait on results from Extendicare. The upside here is so substantial that it mitigates the delays that are so frustrating. We could know at any time that it has sold its American unit and resolved the ongoing government investigation. In any case, we should get some further details during its earnings announcement on Thursday, Aug. 7. The company continues to pay out a nice dividend, which annualizes to 6.6% at current stock prices. That's a huge inducement to be patient.

We got results from our largest company, Philip Morris, and the results were favorable. The company beat earnings estimates, putting up $1.41 in earnings per share versus estimates of $1.24. And revenue came in higher than expected as well. Currency headwinds were not as strong as expected, helping to buoy earnings. While the stock has been relatively stagnant recently, it trades at a reasonable 16 times earnings and offers a meaty 4%-plus yield, making it one of the most attractive megacap stocks.

Dividend announcements
Dividend news:

  • Seaspan went ex-dividend on July 16 and pays out $0.375 per share on July 30.
  • Gramercy went ex-dividend on June 26 and paid out $0.035 per share on July 15.
  • Ryman went ex-dividend on June 25 and paid out $0.55 per share on July 15.
  • Philip Morris went ex-dividend on June 24 and paid out $0.94 per share on July 11.
  • Extendicare goes ex-dividend on July 28 and pays out $0.0362 per share on July 15.

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.

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.

Read/Post Comments (5) | Recommend This Article (10)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 24, 2014, at 11:09 AM, Thallus wrote:

    I bought like 60 shares of this stock for $200 dollars back when it was hovering around $3 a share. (200 is all I could afford)

  • Report this Comment On July 25, 2014, at 4:17 PM, Blackhawk wrote:

    I really enjoy and learn from Jim's writings. I've just finished up some decentralization within my personal major portfolio (trimming investments down to no bigger than a 2.5% range (i.e. taking some profits to invest elsewhere), except for a few and am now looking at $10,000.00 investment blocks for supplemental investing.

    My main interest currently is in dividend stocks via ETFs and looking/seeking for monthly income advantages.

    Once again thanks and Fool On!!

  • Report this Comment On July 30, 2014, at 2:44 AM, nahag wrote:

    Back in 2011, you picked 10 dividend stocks and now of the original 10, two are only still there.

  • Report this Comment On January 05, 2015, at 5:11 PM, afewwords wrote:

    Extendicare Inc. maximizes profits by under-staffing. You will probably never experience the living conditions at an Extendicare long term care home.

    I suggest that you do your research, and then ask yourself if profiting from the neglect of aging, mentally ill people is worth it.

  • Report this Comment On March 05, 2015, at 10:18 AM, PanamaZipp wrote:


    New (well, returning) to the Fool and came across this article. I am more interested individends and the long term prospects of how they contribute to overall growth than with any other aspect of investing right now (though options are on the horizon). I have a mix of outright stable and outright volatile dividend machines and love this thread of articles you started back in 2011. Is this the last of the Mohicans? I did some searching and couldn't find anything more recent.

    Fool on!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3042365, ~/Articles/ArticleHandler.aspx, 8/30/2015 6:12:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Jim Royal

Jim is a special-situations investor focusing on transactional events (such as spinoffs, recapitalizations, or reorganizations, among others) that create advantageous stock mispricings.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 12:34 PM
EXETF $6.05 Up +0.05 +0.83%
Extendicare CAPS Rating: *****
NRF $14.23 Down -0.04 -0.28%
NorthStar Realty F… CAPS Rating: ****
PM $80.35 Down -0.43 -0.53%
Philip Morris Inte… CAPS Rating: ****