The World’s Best Dividend Portfolio

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    Published Fri, 06 Jul 2012 22:09:40 GMT on The Motley Fool


    In June 2011, I invested my money equally in a selection of 10 high-yield dividend stocks. Those names offer triple the yield of the average S&P 500 stock. You can read all the details here. Now let’s check out the results so far.
    Company Cost Basis Shares Yield Total Value Return
    Southern $39.71 25.0818 4.2% $1,165.05 17.0%
    Exelon $41.36 23.818 5.6% $1,075.78 (9.7%)
    National Grid $48.90 20.3693 5.7% $1,080.80 8.5%
    Philip Morris International $68.49 14.5429 3.4% $1,294.03 29.9%
    Annaly Capital $17.92 65.5 13.0% $1,108.92 (5.5%)
    Frontier Communications $7.88 126.4243 10.0% $506.96 (49.1%)
    Plum Creek Timber $38.42 26 4.2% $1,034.80 3.6%
    Brookfield Infrastructure Partners $26.12 38.2825 4.4% $1,300.84 30.1%
    Vodafone $26.52 37.5566 5.0% $1,063.23 6.7%
    Seaspan $14.90 76 5.7% $1,308.72 15.6%
    Cash $88.11
    Dividends Receivable $126.43
    Original Investment $9,986.58
    Total Portfolio $11,153.65 11.7%
    Investment in SPY (including dividends) 8.6%
    Relative Performance (percentage points) 3.1
    In what’s becoming a trend, our portfolio gained again this week, with cumulative gains climbing to 11.7%, up from 10.5% last week. But the S&P did even better, moving from 5.5% to 8.6%, shrinking our outperformance to 3.1 percentage points. As we’ve seen all year long, we go up when the S&P goes up, but not as much. We still offer a much better yield, at 5.8%. The news out of Europe seems to have provided the market with some confidence, but I suspect that will be short-lived.
    The heat and storms that have shaken up the Midwestern and Eastern U.S. have also had some effect on a few of our companies, including Exelon (NYSE: EXC), Southern (NYSE: SO), and Frontier (Nasdaq: FTR). Already a week after the first of the storms, some 500,000 residents are still without power. By Thursday, Exelon said it still had about 53,000 Maryland customers without power at its Baltimore Gas & Electric unit.
    The slowness of returning power to residents has some elected officials questioning why more lines aren’t underground. The answer? Underground lines can cost up to $15 million per mile to lay. Any push to move more of them underground would increase costs (and customer ill will) at our utilities. Frontier, too, is out restoring service to customers following the storms.
    Philip Morris (NYSE: PM) has provided our portfolio some excellent returns in just a year. Can that continue? Fellow Fool Dan Caplinger sums up the company’s 2012, and shows what to look for moving ahead in this article. Check it out.
    Dividends and other announcements
    We’re in between earnings seasons, and we have mainly dividend news for the moment.
    Dividend news:
    National Grid (NYSE: NGG) went ex-dividend on May 30 and pays out $2.017 per share on August 15. Philip Morris went ex-dividend on June 25 and pays out $0.77 per share on July 12.
    Vodafone went ex-dividend on June 6 and pays out $1.015 per share on August 1. Annaly went ex-dividend on June 27 and pays out $0.55 per share on July 26.
    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 up more shares.
    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.... Read more

    Stock name                                     ISIN Last trade   P/E Earnings/Share Dividend/Share Dividend yield
    FRONTIER COMMUNICATIONS P/E of FRONTIER COMMUNICATIONS on Bloomberg Quote of FRONTIER COMMUNICATIONS on CNNMoney FT.com - FTR:NSQ P/E ratio of FRONTIER COMMUNICATIONS on Google Finance Dividend yield FRONTIER COMMUNICATIONS on Morningstar Dividend FRONTIER COMMUNICATIONS on MSN Money Dividend FRONTIER COMMUNICATIONS on Reuters FRONTIER COMMUNICATIONS dividend US35906A1088 4.40   28.0 0.16 0.40 9.09
    NATIONAL GRID P/E of NATIONAL GRID on Bloomberg Quote of NATIONAL GRID on CNNMoney FT.com - NGG:NYS P/E ratio of NATIONAL GRID on Google Finance Dividend yield NATIONAL GRID on Morningstar Dividend NATIONAL GRID on MSN Money Dividend NATIONAL GRID on Reuters NATIONAL GRID dividend US6362743006 63.14   13.3 4.71 3.17 5.02
    SOUTHERN COMPANY P/E of SOUTHERN COMPANY on Bloomberg Quote of SOUTHERN COMPANY on CNNMoney FT.com - SO:NYS P/E ratio of SOUTHERN COMPANY on Google Finance Dividend yield SOUTHERN COMPANY on Morningstar Dividend SOUTHERN COMPANY on MSN Money Dividend SOUTHERN COMPANY on Reuters SOUTHERN COMPANY dividend US8425871071 45.20   19.4 2.35 2.03 4.49
    PHILIP MORRIS INTERNATIONAL P/E of PHILIP MORRIS INTERNATIONAL on Bloomberg Quote of PHILIP MORRIS INTERNATIONAL on CNNMoney FT.com - PM:NYS P/E ratio of PHILIP MORRIS INTERNATIONAL on Google Finance Dividend yield PHILIP MORRIS INTERNATIONAL on Morningstar Dividend PHILIP MORRIS INTERNATIONAL on MSN Money Dividend PHILIP MORRIS INTERNATIONAL on Reuters PHILIP MORRIS INTERNATIONAL dividend US7181721090 94.12   18.1 5.21 3.40 3.61
    EXELON P/E of EXELON on Bloomberg Quote of EXELON on CNNMoney FT.com - EXC:NYS P/E ratio of EXELON on Google Finance Dividend yield EXELON on Morningstar Dividend EXELON on MSN Money Dividend EXELON on Reuters EXELON dividend US30161N1019 34.65   31.1 1.12 1.24 3.58

    FRONTIER COMMUNICATIONS - FTR  


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