In the coming days, I'm putting $10,000 of my personal portfolio into four dividend stocks and an ETF. Today I'll reveal their names, and show you how to access 13 more high-yielding tickers so you can build the world's most outstanding dividend portfolio for yourself.

Over the past three months, I and several other writers have covered many popular dividend stocks from every conceivable angle. We did this in response to readers demanding more coverage of these stocks. You asked for it and we have delivered -- but we're not done yet. Not even close!

In a wildly popular November article, two commenters challenged me to back up my recommendations with my own money. Challenge accepted! I'm putting my own money into several of my previous picks, and promising you that I won't sell any of them for the next 365 days -- no pump-and-dump here.

Spend a few days researching these five picks I cite below, along with the stocks from the expertly researched free report you can download at the end of this article -- then pull the trigger on your own portfolio of market-thrashing dividend stocks. I'm not buying for several days, so you have the rare opportunity to get into these stocks before I do.

And it won't cost you a dime to learn what they are.

One outstanding dividend stock
As the cornerstone of my portfolio, I'm buying the stock I named The Most Outstanding Dividend Stock I Know. Faithful readers know I'm talking about Waste Management (NYSE: WM), the leading waste and environmental services company whose primary revenue comes waste collection and landfill storage. I like the company due to the certainty of its industry. Trash will grow as the population grows, unless a significantly larger and sustained effort is made to recycle waste. Even if that effort happens, I feel my bet is perfectly hedged, as Waste Management is also North America's largest recycler. With a 25% position, this will be the largest holding in my dividend portfolio.

The best dividend ETF around
Next might be a peculiar pick for stock-focused readers, but one I'm certain will resonate with dividend lovers worldwide. With 20% of the portfolio, I'm buying a low-cost dividend ETF suggested to me by's esteemed Managing Editor Brian Richards. Having started trading as an ETF in 2006, Vanguard Dividend Appreciation ETF (NYSE: VIG) is a cheap way to buy large, financially sound U.S. companies with a long history of increasing their dividends year after year. Above-average dividend growth is a prerequisite of my portfolio -- I don't settle for less, and neither should you. I believe dividend growth, much more than current yield, is critical to a successful dividend portfolio. By buying this Vanguard ETF, I'm getting a small piece of roughly 140 American juggernauts such as Pepsi, McDonald's, and Caterpillar that have followed that core requirement of dividend growth for more than 10 years.

American dividend all-stars
Speaking of U.S. stocks, in November I introduced my three favorite American companies, and today I'm tapping two of them to join my personal dividend portfolio. Each is getting a 20% allocation for very different reasons.

First is Yum! Brands (NYSE: YUM), the company behind Taco Bell, Pizza Hut, and KFC. I like their short-but-positive dividend history as I highlight below, but I also like the international growth prospects they add to the portfolio.

Next is steel producer Nucor (NYSE: NUE), which is the best-of-breed in a beat-up industry. There are two strong reasons Nucor will come out sprinting on the other side of downturn:

  1. Their mini-mills break-even at lower capacities than their competitors, giving them a large advantage over when compared to companies like U.S. Steel (NYSE: X), which has significantly higher fixed costs.
  2. Management's "pain sharing" philosophy is aligned with shareholders and employees. CEO pay was cut 43% in 2009 versus 2008 levels, and the company didn't make any layoffs.

Dividend-paying excitement
The last pick from the portfolio comes straight from David Gardner over in Motley Fool Stock Advisor. While David is not known for traditional dividend stocks, but for high-growth companies that swell in value many times over, I'm excited to grab one of his picks for this portfolio as it greatly increases the chance of stock price appreciation, while still meeting my strict dividend guidelines. For the final 15% of my portfolio, I'm buying Hasbro (Nasdaq: HAS).

While it's one of the world's largest makers of toys and games, Hasbro has less than half the market cap of the next largest holding in my portfolio. I'm adding it for many of the same reasons David recommended the stock to Stock Advisor members -- Hasbro's intellectual property (IP) is vast and largely untapped in newer media formats, and is reminiscent of a pre-acquisition Marvel. But I'm not banking on a buyout to make this pick work, or else it wouldn't fit with a dividend strategy. I believe we've only seen the tip of the iceberg in the Transformers and G.I. Joe movies. As they continue to turn their decades-old IP into cash flow, we shareholders will benefit from the stock's rapidly growing dividend payments.

Let's talk dividends
I've talked a lot about the companies, but not about the dividends specifically. Below is a table showing each company's and the combined portfolio's vitals. You can skip this table straight to the final paragraph below it, but there are three quick things you need to know about the portfolio:

  1. The yield is almost 50% higher than the market.
  2. The yield is growing many times faster than the market over the past five and 10 years.
  3. The payout ratio -- or the percent of net income that's paid out as a dividend -- is high, making this a somewhat risky dividend portfolio. If you want, you could tone down the risk by substituting out Nucor with one of the 13 high yielders from the free report at the end of this article.


% of Portfolio


5-Year Dividend CAGR

10-Year Dividend CAGR

Payout Ratio

Waste Management






Yum! Brands












Vanguard Dividend Appreciation












Portfolio Total  





Source: Capital IQ, a division of Standard and Poor's. N/A = not available. Totals are weighted by portfolio allocation percentage and exclude not-available figures.

Invest alongside my $10,000
I'm highly confident in this portfolio's ability to crush the market over the next decade, and that's why I'll be pouring $10,000 of my personal cash into these tickers in the next few days. If it maintains historic dividend growth rates, I'll be sitting on a 7.4% annual yield on my original investment in just five short years -- and the yield will only keep growing year after year. This simple fact excited me enough to move new funds into my brokerage account last week.

I think you'll agree that it's time to act. Consider the five tickers above along with the 13 names from a new, free report from Motley Fool's expert analysts called 13 High-Yielding Stocks to Buy Today, including one named by a senior retail analyst as "the dividend play of a lifetime." Tens of thousands have requested access to this report and today I invite you to download it at no cost to you. To get instant access to the names of these 13 high-yielders, simply click here -- it's free.