Thirty-four 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 | $27.80 | $1,112.00 | 11.83% |
|
Philip Morris |
$61.83 | 16 | $65.30 | $1,044.80 | 5.61% |
|
National Grid |
$45.63 | 22 | $49.93 | $1,098.46 | 9.42% |
|
Annaly Capital Management |
$17.55 | 57 | $15.84 | $902.88 | (9.74%) |
|
Frontier Communications |
$8.71 | 149 | $5.90 | $879.10 | (32.26% |
| Southern Co. | $37.87 | 26 | $42.68 | $1,109.68 | 12.70% |
|
France Telecom |
$22.23 | 45 | $17.58 | $791.10 | (20.92%) |
|
Vodafone Group |
$28.69 | 38 | $26.90 | $1,022.20 | (6.24%) |
| Eli Lilly | $34.48 | 29 | $37.70 | $1,093.30 | 9.34% |
| Bristol-Myers Squibb | $25.37 | 39 | $32.96 | $1,285.44 | 29.92% |
| Cash | 44.05 | $44.05 | |||
| Dividends Receivable | 47.07 | $47.07 | |||
| Total Portfolio | $10,430.08 | 4.30% | |||
| Investment In SPY | (7.88%) | ||||
| Return vs SPY (percentage points) | +12.18 |
Source: S&P Capital IQ, as of Oct. 11.
Since my last report, the SPDR S&P 500 rose 5.79%. As the market rose, our portfolio outperformance fell, moving from beating the market by 14.31 percentage points to a 12.18 point advantage. 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 eight months. I firmly believe the results will bear us out.
Movers and shakers
Of our stocks, the biggest mover in the portfolio the past week was France Telecom, which rose 8.12%. European stocks in general have risen as fears of a European debt crisis lessened. As such, Vodafone, our other European telecom, also rose 3.46%.
Money!
There are two upcoming dividends for the portfolio:
- Annaly Capital Management will pay a dividend of $0.60 per share on Oct. 27. The ex-dividend date was Sept. 28.
- Bristol-Myers Squibb will pay a dividend of $0.33 per share on Nov. 1. The ex-dividend date was Oct. 6.
Commentary
One of the surprising movers in the portfolio over the past two weeks was Annaly Capital Management, which briefly dropped all the way to $14 before rebounding to nearly $16. I took a look at mortgage REITs as a group and speculated on the reasons investors soured on the sector. While the drop was too brief for us to take advantage, if shares drop far below $16 again, we would be very interested to add to our position.
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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