And to balance all of these in your portfolio

Take for example BAC or MO they have great yields growth and cap apprecation. Or PGH or PWE great Yields up to 15%!

Do you guys suggest any specialized dividend sites to get dividend data from?

1) Agricultural and commodity stocks are cyclical and dividends can range from 0 to 15% depending on if it is a good or bad harvest / and the demand for the end product. There is almost nill capital growth in this sector, but income can be quite good. (Note, obviously, if you buy at the bottom of the cycle, when the company is in loss, capital growth may occur)

2) Utility stocks such as water and electric allways seem to pay,and generally have good capital gains.

3) Emerging markets are no riskier than the USA.

4) Shipping seems to pay good dividends and they are often tax free.

5) If the government owns part of the company, this is a good sign, as ussually the government will ensure a monopoly / friendly business environment will exist.

6) Chasing big fat dividends (being too greedy), often results in disappointment. For example, recently I invested in some subprime stocks, and the big profits soon turned to losses and capital destruction.

7) Good dividend paying companies, seem to get bought over quite frequently. yes, you ussually get a premium at the takeover, but, sadly, you lose a good income stream.

The stocks listed in your portfolio aren’t merely paying a 2.4% yield. They are creating value with the earnings you retain. As far as I can tell, you’ve selected stocks with a good record of earning a high return on their retained earnings. Therefore, the dividend income should merely be viewed as a return of excess capital. You’re “look through” earnings in these businesses are much greater.

Think about the stock’s earnings coupon. A bond’s coupon will not grow. Therefore, you are merely comparing initial rates of return when you compare a risk free yield to the dividend yield on your portfolio. Also, your coupon has some built in inflation protection, because you are invested in a lot of asset light businesses with pricing power. No one seriously doubts you could raise the price of each can of Coke another cent or two today. Unforunately, that is not the case in many businesses.

So, you have some built in protection from inflation on your investment. A risk free account does not offer any such protection.

Many long-term bonds are offering no margin of safety after inflation is considered. Provided you buy at sensible prices, your 2.4% yield is certainly no more risky than buying a long-term government bond at current yields.

Now, if you are investing for price appreciation (but it sounds like you are investing for dividends), then a 2.4% is nice. But considering your main purpose of investing is for dividends, it seems absurd to take on that much risk for a 2.4% annual return.

If I were you I would start looking at stocks that pay a higher dividend (i.e., on of the Canadian Oil & Gas Royalty Trusts), or if you are happy with a return of