The World's Best Dividend Portfolio
|Exelon (NYS: EXC)||$41.36||23.818||5.7%||$1,062.23||(10.9%)|
|Philip Morris International (NYS: PM)||$68.49||14.5429||3.5%||$1,289.81||29.5%|
|Annaly Capital (NYS: NLY)||$17.79||72.5||12.9%||$1,239.03||(3.9%)|
|Plum Creek Timber||$38.42||26||4.2%||$1,048.84||5%|
|Brookfield Infrastructure Partners||$26.12||38.2825||4.1%||$1,390.80||39.1%|
|Retail Opportunity Investments||$12.20||81.95||4.5%||$1,030.93||3.1%|
|Annaly Preferred C||$25.92||38.5||7.3%||$1,002.93||0.3%|
|Investment in SPY (including dividends)||10.1%|
|Relative Performance (percentage points)||0.9|
Source: S&P Capital IQ.
Our portfolio was off quite a bit for just a week, moving from 12.7% to 11% this week. Surprisingly, on this down week, we actually lost ground on the S&P, moving from 1.5 percentage points up to just 0.9. We usually gain on the S&P when it goes down. However, I still expect our stocks to outperform our benchmark. Our blended yield is 5.8% and we have quite a few dividends in the next couple of weeks.
I've selected Philip Morris for my portfolio because of its international growth profile, broad geographic diversity, and growing dividend, among other reasons. But some investors have a soft spot for Altria (NYS: MO) , the all-American tobacco company that has done very well in the last six months and still offers a much better dividend (5.2% to 3.4%). Other tobacco investors prefer another play, Lorillard (NYS: LO) , which pays a juicy 5% yield and is focused on the U.S. If you're looking for which is the better American bet, fellow Fool Alex Planes breaks it all down for you here.
Exelon continues to divest power plants as part of its acquisition of Constellation a few months ago. Now the company has sold five fossil and biomass plants in California. Recently the company sold three Maryland coal-powered plants.
Shortly, we'll be receiving our first dividend from the only preferred stock in our portfolio, the Series C from Annaly Capital. It pays out an attractive 7.3% at the current price, and I'm interested in the preferred as the dividend on Annaly common slowly slides.
Dividends and other announcements
We're mostly through earnings season, and have lots of dividend news for the moment.
- Seaspan went ex-dividend on Aug. 10 and paid out $0.25 per share on Aug. 22.
- Southern went ex-dividend on Aug. 2 and pays out $0.49 per share on Sept. 5.
- Plum Creek went ex-dividend on Aug. 15 and pays out $0.42 per share on Aug. 31.
- Exelon went ex-dividend on Aug. 13 and pays out $0.525 per share on Sept. 10.
- ROIC went ex-dividend on Aug. 14 and pays out $0.14 per share on Aug. 31.
- Annaly Preferred C goes ex-dividend on Aug. 31 and pays $0.47 per share on Oct. 1.
All that, of course, means more money coming into our pockets.
It's fun to sit back and get paid, and with the market volatility, we might have a good chance to reinvest those dividends at good prices. Europe continues to be an absolute mess, and continued bad news will likely have stocks plunging again, and if they do, I'll be inclined to pick more shares up.
Foolish bottom line
I've been a fan of big dividends for a while, and I think this portfolio will outperform the market over time through the power of dividends. As I promised in the original article, I'll be holding these stocks for at least a year and will continue to track the portfolio over the course of the year, including news on these companies.
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The article The World's Best Dividend Portfolio originally appeared on Fool.com.Jim Royal, Ph.D., owns shares of the 13 portfolio stocks mentioned in the table.The Motley Fool owns shares of Seaspan, Brookfield Infrastructure, ROIC, and Annaly.Motley Fool newsletter serviceshave recommended buying shares of Vodafone, ROIC, National Grid, Brookfield Infrastructure, Exelon, Annaly, and Southern, as well as writing covered straddle positions on Exelon and Seaspan. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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