Daily dividend news for investors in dividend stocks

Buying Stocks For A Dividend Growth Portfolio: Part 2c Supplemental Examples

Published Sat, 02 Sep 2017 07:38:24 -0400 on Seeking Alpha

Introduction: Why this is a separate portfolio The focus of this portfolio has always been more aggressive than the core portfolio. The investment held for the longest period of time, and the only one that has reached the maximum dollar value guideline used to manage these portfolios, is an aggressive growth mutual fund. It was originally, and for a long time, the only holding in this portfolio. That fund was virtually a technology fund during the build up to the Internet bubble, and, not surprisingly, its performance took off during the '90s.
It hit the dollar maximum limitation resulting in sales of mutual fund shares a number of times, especially late in the Internet bubble. The proceeds were used to purchase some stocks discussed below and a "parking lot" position in Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B). Funds were also taken out of the stock portfolio to purchase long-dated, inflation-indexed Treasuries. This portfolio was not restricted to 100% common stocks like the Widows' and Orphans' Portfolio. The Treasuries resulted in significant capital gains when the Federal Reserve decided to drive interest rates down in response to the housing bust.
Until they were sold, the Treasuries provided interest payments that were used to purchase some stocks in this portfolio. More recently, some of the Berkshire Hathaway stock has been liquidated in order to purchase dividend-paying stocks. It took some time for the mutual fund to recover from the... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
TRANSCANADA 48.35   15.2 3.19 2.24 4.57
UNITED PARCEL SERVICE 96.17   18.4 5.24 3.84 3.86
GENERAL MILLS 53.43   21.0 2.55 1.96 3.74
METLIFE 48.13   9.4 5.15 1.76 3.70
QUALCOMM 66.21   35.0 1.89 2.48 3.58
KIMBERLY-CLARK 130.91   25.8 5.08 4.12 3.17
LOCKHEED MARTIN 340.07   17.4 19.57 8.80 2.56
CLOROX 149.63   24.4 6.12 4.24 2.55
NOVARTIS 83.91   15.9 5.27 1.84 2.25


Older articles featuring Transcanada (TRP):
The Best Dividend Stocks To Buy In This Risky Market
Buying My Canadian Dividend Stocks When They're Down, Because They're Down
The Best Dividend Stocks To Buy As Earnings Season Heats Up
The Best Dividend Stocks To Buy In A Red Hot Market
The Best Dividend Stocks To Buy This Week: Now Featuring 'Fat Pitch' Blue Chips
The Best Dividend Stocks To Buy In April
How To Choose Stocks For Your Defensive Dividend Portfolio
10 Fairly Valued MLPs: Are The High Yields Worth The Risk And Effort? Part 12
The Best Dividend Stocks To Buy Ahead Of The Coming Bear Market
FEN: A High-Yielding MLP Fund To Profit Off Energy Transportation Growth