My Dividend Yield

Written by The Dividend Guy on October 13, 2006

As a follow-up to last weeks post, I thought I should probably talk briefly about my average dividend yield. Based on all the individual stocks within my portfolio (listed in the left sidebar) I am currently earning 3.50% from dividend within my portfolio. This is pretty much where I shoot to be at, however I wouldn’t mind it being a bit closer to 4%. With the S&P’s average dividend yield hovering at around 1.9% right now, I think that my portfolio is well balanced and has that extra oomff that on dividends can provide.

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4 Comments so far

  1. Midas October 14, 2006 8:07 am

    Have you ever considered buying Altria, ACAS, or ALD. They have pretty good dividends. I bought this stocks in my ROTH and signed up for the DRIP program. What do you think of Pfizer? I have been thinking of buying due to the fact that a lot of babyboomers will be retiring soon.

  2. Steve Brady October 17, 2006 8:36 am

    I am 58. I started looking to create income when I was handed my Dad’s proceeds from selling the home he lived in for 45 years. Half a million to invest. He had purchased his half million dollar home for 22,000 in 1958. I had some very memorable experiences from the dot.com era that made security a huge factor in my new investments, in addition to looking for income. I decided that a good investment for me/Dad would be returning 7 to 8% a year. Like the S&P average has over time.

    Here’s how my money is making me more than 7% a year in income. Potential gains from market increases are not included.

    Intelsat Bond 7.625%
    PREMX Em Gwth Bond Fund 6.7%
    WTLTX Westcore Inc Fund 6.9
    APU Amerigas Partners 7.5%
    CVP Centerplate 9.5%
    HCP Health Care Properties 5.47
    SFI IStar Financial 7.38
    LYG Lloyds 6.24
    RAS Rait Investment 8.59
    XSS US Steel 9.43

    Lloyds was 7 or 8 % when I bought it. Interesting how as price climbs the rate of return is less attractive. Not risk free but nothing I have to worry about. The market gains recently have been nice in addition to the income stream.

    I am concentrating on Income. It’s been 3 years and doing well but a long way to go. I hope any one of these will help you get to your goal of 4%.

    Steve Brady

  3. ETF Guy October 21, 2006 4:46 pm

    Out of curiousity, what total return would you consider good? That’s including dividends plus appreciation in the value of the stocks you own.

    I ask because I’m wondering if you’ve run the numbers of stashing cash in a high-yield savings account (5%) and then investing non-dividend-yielding stocks which have the potential for more growth. The cash would be really secure and offset the extra risk in holdings stocks.

  4. Bills June 19, 2007 10:19 am

    RE: EFT Guy

    I do have a lot of cash in high-yield money market and bond funds in addition to several mutual funds, both mid and large cap. I also invest in a few speculative stocks as well in hopes of a big return. But overall, I would say I’m pretty conservative.

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