The list shows an interesting mix of industries and sectors: REITs, financials, energy, retail, etc. Each should be carefully evaluated accordingly to understand the sustainability of the dividend. 👍
Investing for dividends is a great way to develop an income stream. I started an "income portfolio" about 3 years ago and have been adding to it weekly since inception. My inspiration was a group of authors on Seeking Alpha. Rida Morwa is probably one of the most vocal advocates of investing for income over there. He, and others, state you should have an accumulation goal such that the dividends start to cover one of your expenses. For example, think of your electricity bill. How much stock would you need at the dividend yield to cover that bill? Once you have that bill covered you add another to cover. His free service to readers is recommending stocks to buy so you can build your own portfolio. The paid service shows a portfolio for subscribers to mimic.
It's very easy to get caught up in "yield chasing", which can lead to buying shares of fragile and low quality companies. Be careful! You will never see a recommendation for Coca-Cola from these services.
My income portfolio consists ~1/3 of moderate yielding REITs with strong financial sheets, low debt, and a strong moat. Another ~1/3 is consists of mREITs that all together provide a diversified pools of loans and financing structures for real estate. The final ~1/3 is BDCs which all together have a diversified pool of loans for companies. The allocation is approximate because I do have two CEFs, one ETF, and two issues of preferred stock in the mix too. It's 23 positions in all that yield a little over 8% now.
The dividends are currently being reinvested. At some point (3 - 5 years?) I will turn off the reinvestment and use the distributions for my highest "expense", which is funding my tax deferred retirement accounts.
Great list. I was never a huge fan of dividend companies though. The top dividend companies offering say 8% tend to move sideways over long periods of time. That’s the average return of holding the S&P 500.
The list shows an interesting mix of industries and sectors: REITs, financials, energy, retail, etc. Each should be carefully evaluated accordingly to understand the sustainability of the dividend. 👍
Investing for dividends is a great way to develop an income stream. I started an "income portfolio" about 3 years ago and have been adding to it weekly since inception. My inspiration was a group of authors on Seeking Alpha. Rida Morwa is probably one of the most vocal advocates of investing for income over there. He, and others, state you should have an accumulation goal such that the dividends start to cover one of your expenses. For example, think of your electricity bill. How much stock would you need at the dividend yield to cover that bill? Once you have that bill covered you add another to cover. His free service to readers is recommending stocks to buy so you can build your own portfolio. The paid service shows a portfolio for subscribers to mimic.
It's very easy to get caught up in "yield chasing", which can lead to buying shares of fragile and low quality companies. Be careful! You will never see a recommendation for Coca-Cola from these services.
My income portfolio consists ~1/3 of moderate yielding REITs with strong financial sheets, low debt, and a strong moat. Another ~1/3 is consists of mREITs that all together provide a diversified pools of loans and financing structures for real estate. The final ~1/3 is BDCs which all together have a diversified pool of loans for companies. The allocation is approximate because I do have two CEFs, one ETF, and two issues of preferred stock in the mix too. It's 23 positions in all that yield a little over 8% now.
The dividends are currently being reinvested. At some point (3 - 5 years?) I will turn off the reinvestment and use the distributions for my highest "expense", which is funding my tax deferred retirement accounts.
This is very interesting. Thank you very much for sharing, Boris!
Let's keep evolving and see where things bring us here. :)
The problem with dividends is that unless you can shield them from tax in some way the govt is going to take 50% of your payout.
If you can put them in a tax-efficient wrapper then great but what is the point in getting a fat % yield but having to give it up to the tax man?
As a private investor, it has to be better to buy companies that pay zero dividends but grow the value of their shares ie compound them over time.
Agreed. That's why the main focus is on compounding stocks via Compounding Quality!
100% correct. Maybe I need to think about why I am subscribed to a substack called compounding dividends :-)
Great list. I was never a huge fan of dividend companies though. The top dividend companies offering say 8% tend to move sideways over long periods of time. That’s the average return of holding the S&P 500.
Different paths that lead to heaven. Dividend growth investing can definitely work with the right approach
For sure. It can work. Based on the evidence though I just think it tends to underperform a simple market index most of the time.
This will really help me
Here you go:
Company ISIN
Realty Income Corp. US7561091049
Franklin Resources, Inc. US3546131018
Amcor Plc JE00BJ1F3079
T. Rowe Price Group Inc. US74144T1088
Federal Realty Investment Trust US3137472060
International Business Machines Corp. (IBM) US4592001014
Abbvie Inc US00287Y1091
Chevron Corp. US1667641005
Kenvue Inc US4917881088
Essex Property Trust, Inc. US2971781057
J.M. Smucker Co. US8326964058
Kimberly-Clark Corp. US4943681035
Stanley Black & Decker Inc US8545021011
Consolidated Edison, Inc. US2091151041
Clorox Co. US1890541097
Johnson & Johnson US4781601046
Medtronic Plc IE00BTN1Y115
Archer Daniels Midland Co. US0394831020
Hormel Foods Corp. US4404521001
Exxon Mobil Corp. US30231G1022
Coca-Cola Co US1912161007
C.H. Robinson Worldwide, Inc. US12541W2098
PepsiCo Inc US7134481081
Air Products & Chemicals Inc. US0091581068
NextEra Energy Inc US65339F1012
Cincinnati Financial Corp. US1720621010
Sysco Corp. US8718291078
Target Corp US87612E1064
Atmos Energy Corp. US0495601058
Genuine Parts Co. US3724601055
McDonald's Corp US5801351017
Procter & Gamble Co. US7427181091
Aflac Inc. US0010551028
Automatic Data Processing Inc. (ADP) US0530151036
Fastenal Co. US3119001044
Illinois Tool Works, Inc. US4523081093
McCormick & Co., Inc. US5797802064
Abbott Laboratories US0028241000
Colgate-Palmolive Co. US1941621039
Cardinal Health, Inc. US14149Y1082
General Dynamics Corp. US3695501086
Lowe's Cos., Inc. US5486611073
PPG Industries, Inc. US6935061076
Brown-Forman Corp. US1156372096
Emerson Electric Co. US2910111044
Becton Dickinson & Co. US0758871091
A.O. Smith Corp. US8318652091
Caterpillar Inc. US1491231015
Walmart Inc US9311421039
Chubb Limited CH0044328745
Linde Plc. IE00BZ12WP82
Nucor Corp. US6703461052
Albemarle Corp. US0126531013
Expeditors International Of Washington, Inc. US3021301094
Church & Dwight Co., Inc. US1713401024
Dover Corp. US2600031080
Pentair plc IE00BLS09M33
Ecolab, Inc. US2788651006
Nordson Corp. US6556631025
Sherwin-Williams Co. US8243481061
W.W. Grainger Inc. US3848021040
Cintas Corporation US1729081059
S&P Global Inc US78409V1044
Brown & Brown, Inc. US1152361010
Roper Technologies Inc US7766961061
West Pharmaceutical Services, Inc. US9553061055
Thank you !
Can I please have the stock codes for these 66 companies - many thanks