Five weeks ago, I invested my cold hard cash into 10 high-yield dividend stocks I believe will beat the market. Let's see the results so far:
|
Company |
Average Cost |
Shares |
Recent Price |
Total Value |
Return |
|---|---|---|---|---|---|
|
Altria |
$24.86 | 40 | $25.82 | $1,032.80 | 3.86% |
|
Philip Morris |
$61.83 | 16 | $65.12 | $1,041.92 | 5.32% |
|
National Grid |
$45.63 | 22 | $47.54 | $1,045.88 | 4.19% |
|
Annaly Capital Management |
$17.55 | 57 | $18.12 | $1,032.84 | 3.25% |
|
Frontier Communications |
$9.36 | 106 | $8.09 | $857.54 | (13.57%) |
| Southern Co. | $37.87 | 26 | $37.58 | $977.08 | (0.77%) |
| France Telecom | $22.23 | 45 | $22.09 | $994.05 | (0.63%) |
|
Vodafone Group |
$28.88 | 34 | $28.53 | $970.02 | (1.21%) |
| Eli Lilly | $34.48 | 29 | $34.48 | $999.92 | 0.00% |
| Bristol-Myers Squibb | $25.37 | 39 | $27.29 | $1,064.31 | 7.57% |
| Cash | 53.71 | $53.71 | 0% | ||
| Dividends Receivable | 45.31 | $45.31 | 0% | ||
| Total Portfolio | $10,115.38 | 1.15% | |||
| Investment In S&P 500 ETF (SPY) | (0.40%) | ||||
| Return vs. S&P 500 ETF | +1.56% |
Source: Capital IQ, a division of Standards and Poor's. Data as of March 25.
Over the past two weeks, the S&P 500 rose a slight 0.35%. Our portfolio maintained its outperformance of the market, extending its lead to 1.56 percentage points! While outperformance is always good, it should be taken with a grain of salt. We're investing for the long term, and it's only been five weeks. But I firmly believe the results will bear us out.
Movers & shakers
Of our stocks, the biggest mover in the portfolio the past two weeks was Bristol-Myers Squibb, which rose 3.33%. The stock jumped on Friday when, as Fool pharma analyst Brian Orelli expected, the FDA approved the firm's melanoma drug Yervoy . The drug is a breakthrough in that it is the first time a drug has significantly extended survival for melanoma patients.
Money!
There are 5 upcoming dividends for the portfolio.
- Annaly Capital Management will pay a dividend of $0.62 per share on April 27. The ex-dividend date is March 29.
- Bristol-Myers Squibb will pay a dividend of $0.33 per share on May 2. The ex-dividend date is March 30.
- Philip Morris International will pay a dividend of $0.64 per share on April 11. The ex-dividend date was March 22.
- Altria will pay a dividend of $0.38 per share on April 11. The ex-dividend date was March 11.
- Frontier Communications will pay a dividend of $0.1875 per share on March 31. The ex-dividend date was March 7.
News
Instead of Sprint
Reinvesting
Many have asked how I plan to reinvest my dividends. I plan on holding cash and only reinvesting once every three months unless there is a spectacular opportunity. I plan on doing this for two reasons: (1) It doesn't let fees eat all your returns, and (2) it gives you flexibility on how you reinvest.
My Foolish bottom line
I'm highly confident in this portfolio's ability to crush the market over the next decade, and that's why I put $10,000 of my personal cash into these stocks. My strategy is simple. I'm buying strong companies with outsized dividends, reinvesting those dividends, and holding them for the long run. Over the coming year, I'll track my performance, update you on when I'm going to reinvest all my dividends, and keep you abreast of news affecting these companies.
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