Published Mon, 01 Oct 2018 12:10:17 -0400 on Seeking Alpha
Investment Thesis Investing for Immediate income outperforms more conservative established investment within a 35 to 38-year time frame - longer than most find themselves actively investing or retired. I recast my projects and fine-tuned the process due to concerns about the previously included ETF.
A Simple Definition Due to previous confusion, whenever I write concerning immediate income investing, I feel it is necessary to define what I'm speaking of when doing so. I define immediate income investing as: Investing with a taxable account seeking immediate high return via dividends.
Due to this focus, I am not concerned with total return or overly focused on capital appreciation. I am a long-term buy and hold investor who is willing to sell if necessary. I often explain you can milk your cows or slaughter them to unlock value - I'd rather milk them.
Three S&P 500 Representative Stocks - AKA "Safe Dividends"
For the three representative stocks, I used: Coca-Cola (KO), Procter & Gamble (PG), and Emerson Electric (EMR). Together, these three stocks have an average yield of 3.1% and a 3-year average dividend growth rate of 4.11%.
Sure Dividends - Dividend Kings
For this comparison redo, I decided against using a singular ETF like the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) due to its history of cutting the dividend - meaning it itself failed the Aristocrat test. To replace it, I used the Dividend Kings listing from Sure... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|OXFORD LANE CAPITAL||9.73||0.0||0.00||1.62||16.65|
|EAGLE POINT CREDIT||16.14||0.0||-1.13||2.40||14.64|
|USA COMPRESSION PARTNERS LP||16.59||0.0||-0.10||2.10||13.04|
|ALLIANCE RESOURCE PARTNERS L.P.||15.86||4.5||3.49||2.16||12.95|
|CAPITAL PRODUCT PARTNERS||10.66||0.0||-8.42||1.26||11.72|
|KNOT OFFSHORE PARTNERS LP||18.65||12.0||1.55||2.08||11.07|
|FEDERAL REALTY INVESTMENT TRUST||135.76||40.4||3.36||4.20||3.00|
|JOHNSON & JOHNSON||130.43||21.6||6.03||3.80||2.93|
|NORTHWEST NATURAL GAS||72.03||30.5||2.36||1.90||2.72|
|ILLINOIS TOOL WORKS||159.85||21.5||7.45||4.28||2.54|
|PROCTER & GAMBLE||122.77||90.3||1.36||2.98||2.49|
|STANLEY BLACK & DECKER||147.12||31.3||4.70||2.76||1.87|
|CALIFORNIA WATER SERVICE GROUP||54.31||44.2||1.23||0.79||1.49|
|AMERICAN STATES WATER||90.79||44.1||2.06||1.22||1.37|
|TOOTSIE ROLL INDUSTRIES||37.68||0.0||0.00||0.36||0.99|
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