This High-Yield Dividend Portfolio Will Beat the Market

Before you go, we thought you'd like these...
Before you go close icon

Thirty-six 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 (NYS: MO) $24.8640$27.00$1,080.008.61%
Philip Morris (NYS: PM) $61.8316$68.84$1,101.4411.34%
National Grid (NYS: NGG) $45.6322$50.87$1,119.1411.48%
Annaly Capital Management (NYS: NLY) $17.5557$16.58$945.06(5.53%)
Frontier Communications (NYS: FTR) $8.71149$5.95$886.55(31.69%)
Southern Co. (NYS: SO) $37.8726$43.12$1,121.1213.86%
France Telecom$22.2345$18.02$810.90(18.94%)
Vodafone Group$28.6938$27.87$1,059.06(2.86%)
Eli Lilly$34.4829$37.42$1,085.188.53%
Bristol-Myers Squibb$25.3739$32.11$1,252.2926.57%
Cash$44.050%
Dividends Receivable$47.070%
Total Portfolio$10,551.865.52%
Investment In SPY(7.47%)
Return vs SPY (percentage points)+12.99

Source: S&P Capital IQ, as of Oct. 25.

Since my last report, the SPDR S&P 500 (NYS: SPY) rose 0.39%. But the portfolio did even better, with our outperformance moving from beating the market by 12.34 percentage points to a 12.99 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.

Movers and shakers
Of our stocks, the biggest mover in the portfolio the past week was again Philip Morris, which rose 3.81%.

Money!
There are four 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.
  • Eli-Lilly will pay a dividend of $0.49 per share on Dec. 9. The ex-dividend date is Nov. 10.
  • Southern Co. will pay a dividend of $0.4725 per share on Dec. 6. The ex-dividend date is Nov. 3.

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.

At the time this article was published Dan Dzombak can be found on his Twitter account: @DanDzombak. He owns shares of Altria, Philip Morris, National Grid, Annaly Capital, Frontier, Southern Co., France Telecom, Vodafone, Eli Lilly, and Bristol-Myers Squibb.The Motley Fool owns shares of Altria Group, Chimera Investment, Philip Morris International, and Annaly Capital Management. Motley Fool newsletter services have recommended buying shares of Southern, France Telecom, Philip Morris International, Vodafone Group, and National Grid. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners